Search - January 2011 - Vol 1 - Manufacturing Solutions for India by Infomedia18

EDITORIAL

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PLEASURE & PANGS OF GROWING he pleasures and pangs of growing is a very special feeling… unique in more ways than one! If there is a sense of achievement along with earning of freedom, there is also an anxiety to perform and more responsibilities to attend to. And expectations… that is a different deal altogether… it is always perceived to be shortchanged and hardly ever met. The more you grow, the more is expected and the less is perceived to be attained. What a feeling! Is it a price to pay for growth or as Mr Spiderman realised later in his life, that ‘with power comes responsibility’. What are we talking about? Is it India’s growth story or are we all pepped up & stressed with SEARCH completing 13 years of existence? Both actually… With India UpBeat about its growth potential, and as SEARCH enters its 14th year, it is surely time to gauge prospects, do a little bit of retrospect and of course, it is time for celebrations! And the only way we want to celebrate it is by sharing the joy with our readers and patrons. How do we do that? With you, our reader, always occupying our mind space, team SEARCH wanted to make this mega issue a treat for you, and hence was born a very carefully created and crafted game changer issue for the Indian manufacturer. The intent is to present manufacturing solutions for India Inc… from the Top Floor to the Shop Floor. This Mega Annual issue is not just for a techie, but a leader, a competent designer and manager of complex systems, who can adapt to rapid societal and technological change. Is it the right time? Now is the time! As the whole world is looking at India to elevate and become the global manufacturing hub, we need to look beyond the tangible benefits and perceived profits. It is more about attaining global leadership with our own ground rules. It is also about setting new paradigms of progress, it is about showing the world what it takes to pull millions of people out of poverty and make them stakeholders in India’s growth story. It is about how to combine rapid economic growth while inculcating market-driven innovation culture, among zillions of other things. As somebody rightly said, winning companies do four things right… they slim down to a few key simple goals with clear targets and carefully follow through; they maintain high levels of trust with their customers, employees & suppliers; they do more of what matters to their consumers and lastly, they channelise the anxiety of their people into results. This incidentally sums up this edition as well. So while the indications are positive for India Inc and the possibilities are even more lucrative, here is a collectors’ edition dedicated to each one of you. We truly believe that we will limit our own growth if we limit our aspirations… so let us aspire more and grow more as limitless possibilities await us.

Archana Tiwari-Nayudu archana.nayudu@infomedia18.in

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Printed by Mohan Gajria and published & edited by Lakshmi Narasimhan on behalf of Infomedia 18 Limited and printed at Infomedia 18 Ltd, Plot no.3, Sector 7, off Sion-Panvel Road, Nerul, Navi Mumbai 400 706, and published at Infomedia 18 Ltd, ‘A’ Wing, Ruby House, J. K. Sawant Marg, Dadar (W), Mumbai - 400 028. SEARCH - The Industrial Sourcebook is registered with the Registrar of Newspapers of India under No. 67827/98. Views and opinions expressed in this publication are not necessarily those of Infomedia 18 Limited. Infomedia 18 Limited reserves the right to use the information published herein in any manner whatsoever. While every effort has been made to ensure accuracy of the information published in this edition, neither Infomedia 18 Ltd nor any of its employees accept any responsibility for any errors or omission. Further, Infomedia 18 Ltd does not take any responsibility for loss or damage incurred or suffered by any subscriber of this magazine as a result of his/her accepting any invitation/offer published in this edition. No part of this publication may be reproduced in any form without the written permission of the publisher. All rights reserved.

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CONTENTS 30 17

Editorial

Foreword

MAPPING GROWTH Building ‘Brand India’ A Global Manufacturing Hotspot

PILLARS OF GLOBAL

COMPETITIVENESS 92

PRELUDE

GROWTH STRATEGY

INNOVATION

IMPROVING BUSINESS VISIBILITY

WORLD-CLASS MANUFACTURING FACILITIES

QUALITY MANAGEMENT

SUSTAINABLE COST REDUCTION

GLOBAL SOURCING

DEVELOPING CAPABLE SUPPLIERS

MANAGING LOGISTICS

LEADERSHIP & ORGANISATIONAL CULTURE

EXPLORING & MANAGING RISKS

GOING GREEN

GAME CHANGERS 74

ONE ‘Q’, MANY VIEWS

Indian Manufacturing VISION 2020

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94 ‘WHEN IDEAS GET OLD, IT IS TIME TO GET INNOVATIVE’ Narendra Modi, Hon’ble Chief Minister of Gujarat ‘WE HAVE THE FUNDAMENTALS FOR STRONG LONG-TERM GROWTH’ Tulsi R Tanti, Chairman & MD, Suzlon Group

‘WE NEED TO FOCUS ON BUILDING OUR BRAND’ V V Paranjape, CEO – Industry Sector & Director, Siemens

100

106

‘A STRATEGY THAT INTEGRATES THE GOALS OF INNOVATION & SUSTAINABLE DEVELOPMENT IS NEEDED’ Ratan Mardia, MD, Nissan Copper ‘THE KEY ELEMENT TO BRING ABOUT ANY CHANGE IS OWNERSHIP’ Naushad Forbes, Director, Forbes Marshall ‘EXCELLENCE AND WORLDCLASS ARE NOT SLOGANS, THEY ARE ATTRIBUTES OF THE FINEST BUSINESSES’ Rajesh Nath, MD, German Engineering Federation (VDMA) ‘THE FACT THAT INDIA IS A LEADING DEMOCRACY IS ALSO INTRINSIC TO THE INNOVATION PROCESS’ Verne Harnish, CEO, Gazelles Inc

‘GOING GREEN IS NO LONGER AN OPTION BUT A HYGIENE FACTOR FOR GLOBAL MANUFACTURING’ Jamshyd Godrej, Chairman, Godrej & Boyce

DISCLAIMER The information contained in this document is for general guidance on matters of interest only. The application and impact of laws can vary formation contained in this document. Accordingly, it should not be used as a substitute for consultation with professional and competent PricewaterhouseCoopers (PwC) & Infomedia18 are not responsible for errors or omissions, or for the results obtained from the use of this inforthis information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, in this document for any consequential, special or similar damages, even if advised of the possibility of such damages.

UNIQUE CHARACTERISTICS OF

SUPER SHOP FLOORS SUPER SHOP FLOORS

110 PRELUDE 112 LEAN LAYOUT

144

114 SAFE & GREEN WORKPLACE 117 LINEAR MATERIAL FLOW 118 CAPABLE PROCESS 120 RELIABLE EQUIPMENT

148

124 VISUAL MANAGEMENT 126 AUTONOMATION

PERFECTION PERSONIFIED ABB, Nashik

154

DEVELOPING INDIGENOUS FRONTIERS Kirloskar Oil Engines, Pune

1 78

130 DIRECT TO LINE THROUGH SUPPLIER CAPABILITY DEVELOPMENT 132 EFFECTIVE GOAL DEPLOYMENT & EXECUTION

DIAL i FOR INNOVATION Titan Industries, Hosur

1 72

THE GREEN PIONEER Cummins Generator Technologies, Ranjangaon

122 CLEAN AND ORDERLY WORKPLACE

128 LEADERSHIP ON THE FLOOR

164

AN EXEMPLARY MODERNISATION SAGA Bokaro Steel Plant

BUILDING THE NATION WITH NERVES OF STEEL HEC, Ranchi

158

EXCELLING AT ALL FRONTS Mahindra & Mahindra, Nashik

136 CULTURE OF CONTINUOUS IMPROVEMENT 138 COMPETENT AND EMPOWERED EMPLOYEES

TECHNOLOGY SOLUTIONS TO

‘DESIGN IS A CRITICAL COMPONENT IN THE INNOVATION PIPELINE’ Robert “Buzz” Kross, Senior Vice President – Manufacturing Industry Group, Autodesk

220

GAME CHANGERS 186 PRELUDE

204 INDUSTRIAL AUTOMATION

190 MANUFACTURING EXECUTION SYSTEMS

208 ADVANCE PROCESS CONTROL

192 RFID & BARCODING

210 ROBOTICS & ARTIFICIAL INTELLIGENCE

194 PRODUCT LIFECYCLE MANAGEMENT

212 FLEXIBLE MANUFACTURING SYSTEMS

196 WIRELESS INDUSTRIAL NETWORK 198 PRODUCT DESIGN SIMULATOR 200 ERP ON THE WEB 202 CLOUD COMPUTING

230

‘COMPANIES NEED TO TAKE A HOLISTIC LOOK AT THEIR SUPPLY CHAINS’ Sunil Jose, VP – Applications, Oracle India ‘DRIVING EFFICIENT OPERATIONS NEEDS REINFORCEMENT OF INNOVATION’ Rajamani Srinivasan, VP – Solutions Engineering, SAP Indian Subcontinent

234

214 HIGH SPEED MACHINING 216 PREDICTIVE MAINTENANCE & EQUIPMENT WITH EMBEDDED DIAGNOSTICS

IMBIBE

223

Product Inquiry Form

238

24 5

Advertisement Inquiry Form

2 5 0 Advertisers’ List

widely based on the speciﬁc facts involved. Given the changing nature of laws, rules and regulations there may be delays or omissions in inadvisors. While we have made every attempt to ensure that the information contained in this document has been obtained from reliable sources, mation. All information provided in this document is with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of and ﬁtness for a particular purpose. In no event will PwC or Infomedia18 be liable for any decision made or action taken in reliance on the information

Product Index

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FOREWORD

anufacturing industry is critical to the growth of a developing economy like India. It not only feeds the local demand but also heralds rapid growth by supplying quality products to the large global market. Historically, it is the manufacturing industry where new technologies have been born; innovation has taken shape; and where scientists, engineers and others have been challenged to develop new & better processes, products and technologies. Beginning with industrialisation, this sector has also been the breeding ground for most management philosophies, principles and techniques. Being one of the largest employers, this industry also helps build the right work culture that seeps down to large number of business associates who employ large number of organised as well as unorganised workforce. In the Indian context, the sector also provides jobs and stability to our growing young population.

In the recent past, manufacturing has not been the numero uno choice for engineers, probably due to the inherent nature of the career and the rigour involved. It is seen as a less glamorous choice because one has to sweat on the shop floors, work in shifts in the initial part of the career and deal with uneducated workforce. Unfortunately, manufacturing companies too have not kept pace with growing pay packages of IT and service sector leading to best engineering talent turning away from it. All this has led to a huge shortage of good engineers in the country at a crucial time when we need this sector to adopt new technologies, innovate manufacturing processes and develop world-class products. In my consulting career, I have seen several manufacturing plants in India and abroad. It has always saddened me that although we aspire to become the manufacturing hub for the world, most of our plants do not stand well in comparison with international competition. We still have to import many manufacturing technologies when it comes to production of world-class products, call for technical experts for critical trouble shooting and rely upon costly imported raw materials as local material is not of desired quality. Although in the last decade, things have changed for the better, the pace of change is still not adequate to give us a leadership position. In the next decade, Indian manufacturing industry has to develop its own unique model that will involve suppliers, manufacturers and logistics providers who will have to act in unison â&#x20AC;&#x201C; in a manner so that risks and gains are both adequately shared. This model has to use our natural advantage of a large workforce, high quality engineering brains and enterprising abilities to develop â&#x20AC;&#x2DC;Leanâ&#x20AC;&#x2122; supply chains from mines to ports. In this issue, we will dwell on topics like super shop floors, emerging manufacturing technologies and critical aspects for global competitiveness. In our experience, there are many examples where companies are doing these things in bits and pieces. But that does not give the quantum competitive advantage, which comes from building manufacturing excellence in all the aspects. I sincerely hope that you will find this issue thought provoking and it will inspire you to build manufacturing excellence in your own organisation. I thank and applaud SEARCH magazine for dedicating their 13th anniversary issue to bring innovative manufacturing practices to help India in becoming the global manufacturing hub.

Ravind Mithe Executive Director- Consulting Practice, PricewaterhouseCoopers

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BUILDING

‘BRAND INDIA’ A GLOBAL MANUFACTURING

HOTSPOT

Indian growth story has been an inspiring and envious one for those economies who are still grappling with the severe impact of the so called great depression. Though all the core sectors of the economies have played their part in inching the growth upwards, major credit goes to the highest employment generating sector – manufacturing. While India is touted as the next global manufacturing hotspot, it needs to smartly tread the growth path to ride ahead of its competitors. In a nutshell, it requires unified efforts from all the companies – big, medium or small to take Indian manufacturing growth story to the pinnacle of excellence.

n the last decade, India has witnessed rapid economic transformation and has played a vital role in the shifting of economic focus towards Asia. The International Monetary Fund has projected that the Indian economy will grow by 9.7 per cent in 2010 and 8.4 per cent in the next fiscal, driven by robust industrial production and macro-economic performance, which is way ahead of most of the developed economics. For India to realise these projections, our manufacturing industry has to play not just significant but a leading role. Historically manufacturing has been the backbone of all

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developed and developing nations. It is where R&D starts, where new technologies are born, where scientists & engineers and others are challenged to develop new and better processes, products & technologies. Manufacturing provides many jobs, at all levels. Among all sectors (service, agriculture, mining, manufacturing), manufacturing distributes wealth most equitably among the workforce; hence is a key factor to pull people above the poverty line, eg. in most of the fast developing Asian countries such as Thailand, Indonesia, Malaysia, Taiwan, Philippines, Korea and China, manufacturing has contributed 30 to 50 per cent of GDP, and thus have helped in eradicating poverty. In contrast, Indian manufacturing sector contributes

Illustration By: Sanjay Dalvi

MAPPING GROWTH

just around 16 per cent to the GDP. While the going is good, we have miles to go before we achieve the set target of becoming the toast of the world. The rapid economic growth of China and India has been topics of research and significant focus over last few years. While China’s growth story has been led by manufacturing sector through preferential government policies, infrastructural developments, foreign direct investments and low cost human capital, Indian growth story has been dogged by inadequate and poor infrastructure, erratic power supplies, bureaucratic on the ground government processes and poor policy implementation. FICCI estimates that the higher input costs for the Indian manufacturing sector as a result of indirect taxes on selling prices of commodities, higher cost of utilities like power, railway transport, water, higher cost of finance and high transactions costs puts the sector at a severe disadvantage as compared to its Asian counterparts.

these positive trends. The organised Indian manufacturing industry is largely characterised by progressive business houses like TATAs, Aditya Vikram Birla Group and TVS who have put corporate focus on building excellence. Dynamic and versatile set of entrepreneurs like Dr Baba Kalyani, who have global aspirations and high adaptability have also played a critical role. These set of companies have led manufacturing improvements on the higher end of the pyramid. Tata Nano is an apt representation of such large manufacturing power houses. In the middle and lower end, there are many manufacturing SMEs who supply to the organised manufacturing sector. The enterprising nature of such Indian entrepreneurs, ability of our engineers to reverse engineer products & processes, natural frugal attitude of managers towards resourcing at lower costs and so called ‘jugaad’ approach (if used constructively) of technicians are the characteristics of these large set of companies. If we combine these factors and harness them well, it may become a formidable combination for global competitiveness. Thanks to all the above mentioned factors, India has fast emerged as a global manufacturing hub. Low cost advantage, skilled manpower, engineering and R&D capabilities across diverse sectors have

automotive, auto-component, metals, FMCG and pharma have adopted global best practices. There are many other sectors where efficiencies, productivity, manufacturing systems are poor and wastes are very high. Worrisome fact is that improvement mindset has not yet fully percolated down to SMEs and Tier II & III suppliers, which form backbone of any manufacturing-led economy. Unfortunately the ground situation in terms of supporting infrastructure, logistics, political system etc does not make their task easy. Hence, in the current context, we need to find solutions that need to be used by the average Indian manufacturing companies to become globally competitive.

TOWARDS ATTAINING GLOBAL COMPETITIVENESS

We see ‘lean manufacturing’ as right answers to a resource-starved economy like India. Lean is a business philosophy and a systematic approach for identifying and eliminating waste, thus meeting customer INDIA INC – RIDING THE demands at the lowest costs with highest GROWTH MOMENTUM flexibility. In this backdrop when we see efforts of Worldwide, organisations have realised Indian manufacturing companies, they look benefits through customer satisfaction, remarkable. In the last 15 years, the product quality, higher productivity, organised manufacturing sector in India has improved delivery and cost effectiveness. put its act together and has spent significant While few large Indian organisations have efforts in putting the house in order. While gone the ‘lean’ way, others can adopt the battling with factors beyond their lean thinking to achieve their set control, they have taken significant goals. We have addressed the There is a need to build a national vision for various efforts to reduce manufacturing facets of lean costs, improve quality, sweating and global manufacturing to be a competitive advantage for manufacturing the assets and improve the country, which has to come from politicians and competitiveness in the articles productivity. As per PwC that follow. political parties who have to rise above political shortResearch, most of the large Indian Lean in early phase lays lot of sightedness and show this dream to the citizens. manufacturing companies have stress on shop floor improvements adopted one or more of the to eliminate wastes, improve structured improvement flexibility and improve quality. approaches such as TQM, TPM, Six Sigma, PwC research and experience shows that a attracted investments from domestic and BPR or Lean. As a result, many Indian successful shop floor has three essential foreign investors in the Indian manufacturing manufacturing companies have become lean elements – Asset Care, Process Care sector. Multinational companies are setting preferred global suppliers and have also and People Care. A combination of Asset up their manufacturing facilities in India. The earned global recognitions. Care and People Care ensures ownership, global outsourcing opportunity has provided Since 2001, India as a country has won combination of People Care and Process India with a great opportunity and with highest number of Deming Prizes, which is Care ensures Sustenance and combination continued commitment; India has become global prize for best implementation of of Asset Care and Process Care ensures a preferred outsourcing and manufacturing TQM given by Japanese Union of Scientists quality and reliability. These aspects, when destination. and Engineers (JUSE). (India - 14, Thailand present in correct balance and coupled with CHALLENGES DENTING - 8, Japan - 4, USA - 1, Singapore - 1). Since seamless execution lead to a ‘Super Shop GROWTH 1995, as many as 150 Indian manufacturing Floor’ that provides the competitive While this is encouraging, the efforts are not companies have won JIPM TPM awards. advantage. In the section on ‘Super Shop yet wide spread across all manufacturing India has the highest number of US FDA Floors’, we have examined range of sectors. Only few sectors with dominance approved pharma plants outside the US. parameters that are essential for transforming of large corporate and MNCs e.g. We need to analyse the causes behind ‘Shop Floor’ into a ‘Super Shop Floor’.

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FACT

MAPPING GROWTH

FAC T

The rapid economic growth of China and India has been topics of research and significant focus over last few years. While China’s growth story has been led by manufacturing sector through preferential government policies, infrastructural developments, foreign direct investments and low cost human capital, Indian growth story has been dogged by inadequate and poor infrastructure, erratic power supplies, bureaucratic on the ground government processes and poor policy implementation.

In today’s world of technology, to make ‘Lean’ happen, one cannot underemphasise the need of appropriate manufacturing technology. Adoption of machines that deploy appropriate technology to ensure precision and quality at the lowest cost and highest productivity is a must for Indian manufacturers. Machines that prevent human errors, measure quality & performance and ensure operator safety are necessary for the right product to be manufactured in the right time and at the lowest cost. However, it is not the machinery alone that makes manufacturing lean. The core plant operations also need various types of plant systems to execute, control and coordinate the production, quality, and maintenance activities. In the section on ‘Emerging Technology Trends for

Manufacturing’, we have reviewed the key technology trends that are shaping the 21st century manufacturing operations. The increasing trend of outsourcing has opened a plethora of opportunities. Global companies are looking for consistent supply of quality products at competitive prices. Strategic alliances and partnerships are on the rise and the focus is shifting towards Asian subcontinent. Even if one is operating at national level, an Indian manufacturing supplier has to compete globally as the customer organisation is open to source globally. Thus, globalisation is real and on home turf itself. Organisations will have to wake up to the challenge by making business competitive in the global marketplace. The section on ‘13 Ways to Stay Globally

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Competitive’ focusses on how organisations can successfully compete on global turf. We don’t see this as a manufacturing strategy for one organisation. This change cannot happen at individual company level alone. For Indian manufacturing as a whole to become a formidable world force to reckon with, all these vectors need to work in tandem. Co-operation among industries, collaboration between competitors, development of vendor and logistics service provider network, educational institutions like B-Schools, IITs, engineering colleges and consultants is necessary for attaining success. The government also has its role well laid-out. Central, state and local governments have to provide vision and requisite policy level support and have to act as catalysts. There is a need to build a national vision for manufacturing to be a competitive advantage for the country, which has to come from politicians and political parties who have to rise above political short-sightedness and show this dream to the citizens. Ravind Mithe, Executive Director – Consulting Practice, PwC India

PILLARS OF GLOBAL COMPETITIVENESS: PRELUDE

PRELUDE conomic globalisation and the expansion of international trade have substantially benefitted organisations around the world in gaining major marketshare. The process of globalisation has been an integral part of the recent economic progress made by India. The manufacturing industry has grown by leaps & bounds and currently has a number of advantages, such as low cost, good quality and skilled manpower, which has put India on the global map, as ‘the destination’ for manufacturing. Competitiveness of an organisation is critical to its sustainable growth and profitability. A globally competitive organisation can compete on a global stage. It has the operational agility and efficiency to grab opportunities in rapidly changing, unpredictable and competitive markets. However, manufacturing firms are usually less prepared to capitalise on these opportunities. One reason for this is that globalisation is a complex issue, and often, a substantial commitment of time and resources is required to determine whether it is feasible to compete within the global arena. An organisation needs to reinvent

itself continuously and work on multiple dimensions in order to enhance its capability and to compete globally, and subsequently stay ahead in the game. A value chain has three components: The fulfillment chain, which ensure delivery of products to customers; comprising suppliers, shop floor, logistics and distribution The development chain, which builds competitiveness by designing new products, processes and the architecture for fulfillment The capability or enabler chain, which provides the right competencies, mindsets, culture and support processes, which integrates the entire organisation. Focussing on all aspects of the value chain is essential to remain competitive. In this section, we have looked at 13 key elements, which can help organisations to keep up the winning spirits. These elements include: Growth strategy Innovation Improving business visibility World-class manufacturing facilities Quality management Sustainable cost reduction

Global sourcing Developing capable suppliers Managing logistics Leveraging IT Leadership & organisational culture Exploring & managing risks Going green. The discussion of these 13 elements will provide an overview of each element of competitiveness and some of the strategic, tactical and operational dimensions of building capability in each element. Every organisation seeking a sustainable competitive advantage in the global arena needs to evaluate where it stands on each of the 13 elements. An objective evaluation can help highlight the gaps in the value chain alignment and integration. Organisations can then create a roadmap with various initiatives, required to close these gaps. A well-designed and executed roadmap will improve the probability of the organisation in reaping benefits for a longer time period in times of turmoil and volatility. Sridhar Kamath, Managing Consultant; Sameer Dharap, Senior Consultant; under the guidance of Ravind Mithe, Executive Director, PricewaterhouseCoopers

KNOWLEDGE PARTNER

PwC firms provide industry-focussed assurance, tax and advisory services to enhance value for their clients. More than 161,000 people in 154 countries in firms across the PwC network, share their thinking, experience and solutions to develop fresh perspectives and practical advice. At PwC, we push ourselves - and our clients - to think harder, to understand the consequences of every action and to consider new perspectives. Our goal is to deliver a distinctive experience to our clients and people around the world. Complementing our depth of industry expertise and breadth of skills is our sound knowledge of the local business environment in India. We are committed to working with our clients in India and beyond to deliver the solutions that help them take on the challenges of the ever-changing business environment. “PwC” is the brand under which member firms of PricewaterhouseCoopers International (PwCIL) operate and provide services. Together, these firms form the PwC network. Each firm in the network is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way.

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PILLARS OF GLOBAL COMPETITIVENESS

It is essential to critically evaluate the internal-external parameters, ever evolving market dynamics and risk benefits of the propositions, before deciding on the organisational growth strategy that will provide sustainable competitive advantage. f well managed, a business has the growth potential and the capability to reap rewards; if poorly planned and uncontrolled, it often leads to financial distress and failure. Therefore, it is essential to review and set right the agenda for growth. This process should begin by evaluating the business’ existing or intended position and the environment in which it operates; before analysing existing or future customers, competitors and suppliers. The results of the analysis; combined with a set of expectations about the future; coupled with creative and innovative thinking, allow the business to develop a range of strategic options designed to achieve its objectives. The evaluation stage includes developing forecasts, competition response, financial projections, and in some cases, a range of valuations, as well as calculating various measures of performance. The strategy setting process can also be used to test alternative ideas and assumptions, as one of the main reasons for planning is to help the business prepare for an uncertain future. Following stages include an examination of the funding issues and risk analysis and lastly presenting and gaining approval for proposed strategy, and then implementing it. To develop a roadmap for a shared view, organisations can focus on two sets of initiatives. It can focus on ‘tactical initiatives’ such as launching new product & services to drive customer service excellence; standardise core customer delivery process and creating a customer-centric organisational design. It can also focus on a series of ‘strategic initiatives’ such as business

operating model - creating areas of growth opportunities; acquisitions, alliances to enter new products & markets; leveraging brand, scale & asset utilisation and focussing on the customers’ needs. As strategy is about preparing for the future, more unstable the market environment, the more challenging strategic planning becomes. There are three key areas to look for: Customer purchasing behaviour; competitor strategies; and lastly what that actually means for your key success factors. As far as the first point is concerned, customer purchasing behaviour is likely to change. For example, will they look to trade down to a cheaper product or service or will they buy the same thing, but just less-often? And which characteristics of the organisational offering will they still value, and which may they deem to be unnecessary or a luxury? That is clearly relevant in the consumer environment. Let’s not forget that this is equally important in the business-to-business environment across the full range of manufacturing and services sectors. For correct analysis, organisations will need to segment their customer base into different groups; either by size, type or by their requirements in order to get meaningful results. Market shares tend to swing more rapidly in periods of contracting demand, and prices can be much more volatile too. Although price is very easy to give away and very difficult to get back, don’t assume that competitors will behave in a way that seems rational to you. Will they be coming after your business, and if they do, what will they be saying to your customers? So do these changes in the external

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market environment change what organisations need to be good at? The organisations may find that the key success factors, which have stood them in good stead over the last few years, might not necessarily be the ones to focus on now. So for example, they may need to shift emphasis away from ‘doing what they can’ to ‘service the demand they have,’ and more actively seeking to generate it or even, defend it. So do you know where your battle lines are? Have you identified who your best and worst customers are? And do you understand how much it might cost you to generate new business, rather than servicing your existing customers and keeping them happy? And you may find that, actually, improved customer relationship management and much more focussed marketing will be critical to achieving this aim. With material prices and even availability directly impacting margins in many sectors, it’s also time to take a hard look at your procurement. That will help you target the big opportunities as well as just the quick ones. The best businesses make tough decisions early. Strategy management is the process by which an organisation establishes its goals and objectives, both short and long-term; formulates plans and charts a course of action for meeting these goals and objectives in the desired timeframe; implements the actions; and finally, analyses progress and results. Hence it is essential to critically evaluate the internal-external parameters, ever evolving market dynamics and risk benefits of the propositions, before deciding on the organisational growth strategy that will provide sustainable competitive advantage.

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PILLARS OF GLOBAL COMPETITIVENESS

Creating a culture of innovation requires companies to develop an innovation discipline that permeates through the entire organisation. To be worthwhile, innovation must follow a predictable and reliable process. nnovation can be summarised as bringing a new product, process or service into practice using creative ideas. It means exploiting new technology, management structure, business process, product & service development and employing out-of-the-box thinking to generate new value for customers and the society at large. As competition increases, cost leadership as a lone strategy, would only result in a squeeze on margins.

Organisations are hence, compelled to think differently to deliver superior value in new ways to grow and stay ahead. They are exploring innovation in various parts of the value chain such as: - ‘Product innovation’ by introduction of a new product or a service - ‘Process innovation’, comprising the implementation of production or delivery method - ‘Supply chain innovation’, in which innovations transform the sourcing of input from the market and the delivery of output to customers - ‘Marketing innovation’, which results in the evolution of new methods of product design or packaging and its promotion or pricing,

At Micromax With a well-defined product vision and a set-up to support it, Micromax has successfully generated innovative handsets that have revolutionised the telecom consumer space. Micromax, through its thorough understanding of the Indian market, has already come up with innovative

At Mahindra & Mahindra The Mahindra & Mahindra Group is among the top industrial houses in India. Its Vice Chairman & MD, Anand Mahindra, has put innovation at the core of its growth strategy. Emphasis is placed on managing the balance between structured processes and the creation of an environment in which radical innovations can succeed. The bio-diesel tractor, India’s first, is a result of a well-executed innovation strategy, following on the footsteps of another innovative process-innovation

handsets aimed at different consumer segments. Some of the ideas that have sold at the marketplace include phones that can also be used as a remote control for consumer durables in a household; phones that have single click access to popular social networking sites like Facebook and Twitter; 30 day standby battery life on mobile sets, which was a big success especially in the rural areas where power failures are common; handsets with dual SIM capability; and handsets with 3D motion gaming technology, targeted at the youth, taking into account the growing gaming culture. Thus, through lower price points and growing R&D capabilities, Micromax has bagged the fourth largest market share in the mobile handset segment.

in the development of the vehicle Scorpio, which involved a collaborative effort involving cross functional working within the organisation as well as tier-1 suppliers. In his book “The Medici Effect”, Frans Johannson says, “Innovation happens when people put together concepts from different areas – especially areas where one would not see an immediate connection – which can result into an explosion of new and great ideas”. Micromax’s remote control mobile phone is an example where two uses have been combined into one product. Concurrent development at Mahindra & Mahindra is an example of improving efficiency and effectiveness, by bringing together people from diverse function,

- ‘Management innovation’, which aims at changing the way in which organisations are managed.

INNOVATIONS GALORE

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PILLARS OF GLOBAL COMPETITIVENESS

together; which led to better ideas. However, innovation in an organisational context has its share of challenges. One challenge is in getting the organisation to fund the generation and nurture the ideas, till they can be commercialised. Another challenge is getting organisational buy-in into a great idea and supporting the implementation of the innovation. Relying on few individuals for all innovations in the organisation makes the entire organisation vulnerable. Creating a culture of innovation therefore requires companies to develop an innovation discipline that permeates through the entire organisation. To be worthwhile, innovation must follow a predictable and reliable process. Having the ability to identify and predict the success of product innovations with greater success and profitability gives companies the power to lead their industry and create the most long-lasting impact. The process of creating an innovation culture is similar to that of creating any other kind of culture in an organisation (for instance, continuous improvement). Some of the characteristics of a well designed and implemented innovation

strategy include: Creation of a vision: As a first step, it is essential to create a vision for innovation in the organisation that is directly linked to overall business strategy. There has to be clarity about the role of innovation in the organisation and how the innovation will drive an organisation towards its desired long-term market positioning and growth. This requires clear leadership, communication and reward systems. Defining the business processes: Organisations must develop disciplined business processes - whose intent is to create a reliable stream of innovations in the organisation. These processes have to be treated with the same level of expectations that organisations apply to other business processes. The four core processes include: identifying innovation opportunities; managing the portfolio of innovation projects; designing & developing new products & services; and launching new products & services. Creating an improvement structure to manage innovation: While everyone wants â&#x20AC;&#x2DC;that one great innovative ideaâ&#x20AC;&#x2122;,

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creating culture of innovation is essential for getting and making that idea work. This means, creating a right improvement mindset starting from grassroot level through the principle of Kaizen and setting tough improvement targets to operating managers. This will encourage out-of-the-box thinking. It is also important to systematically expose employees to world-class technologies and practices, and rewarding innovations in the formal performance management system. Innovation processes need to be supported by organisational structures, which will define processes, deploy targets, plan & arrange for funds to support innovation, monitor progress, apprise the management of progress, and take corrective action as required. The benefits of a well-implemented innovation strategy are immense. These include: improvement in marketshare, improved profitability and increased competitive advantage. In the new global economy, innovation is increasingly becoming an essential part of medium and long-term business continuity.

PILLARS OF GLOBAL COMPETITIVENESS

Building visibility and effective networking is all about building relationships. As the relationship grows, fed by mutual trust and shared benefits, they evolve through three phases: visibility, credibility and profitability. ustomer relationships are the key to any business’ success, and people’s knowledge of your business is what drives growth. In order to ascertain the same, organisations can initiate building visibility through establishing brand, improving the search ability of the brand, products & services across the search engines, advertising the value proposition, and finally taking advantage of social media, to build a relationship with the customers. Brand building is one of the first steps of creating visibility. It’s through this that the name of a company, its subsidiaries or even products can be promoted effectively. It includes perfect execution of corporate branding and product branding, which are instrumental in increasing the visibility of the company. Cadbury India is a classic example of attaining brand visibility. It has made constant and effective brand building efforts to increase the brand salience. This was done using a broad palette of execution; from real-life situations, to emotional, fun-and festive-centric communication to teaser and online promotion. The success of the Cadbury brand can be seen in how its image is continually maintained over time. Identifying brand values and matching these to consumer lifestyles - in specific market

segments - can help develop a clear advertising message. With Internet driving the growth momentum of businesses worldover, its critical role in enhancing brand visibility cannot be undermined. Once the website is finally live, the real work starts; but if the word is not spread, all efforts will be lost. This is where search engine optimisation (SEO) comes into the picture. Building an organisational website around SEO and then leveraging it, canalises the incoming traffic better, and hence, organisations’ visibility on the Internet. SEO is, therefore, an extremely profitable online-marketingstrategy that targets a large number of online consumers. It offers a widespread exposure to the largest percentage of targeted consumers. This way, Internet advertising has helped organisations to reach millions of people, at a fraction of the cost of traditional marketing techniques. However the above efforts are not enough. Today, we live in an environment where vast network of seamlesslyconnected-devices exist. There are over one billion people connected to Internet, more than four billion have mobile phones with data capable smart phones, and more than four hundred million people are sharing billions of pieces of content and experiences, each week, via online exchanges. Years ago,

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bloggers first grabbed worldwide attention and influence. That was just the beginning of the social network revolution. Social networks, such as Twitter, Facebook, YouTube, and the like, have enhanced the ability for anyone to publish, share, and discover information. Via social network, customers and prospects share a real-time platform for discussion of their ideas, experiences and knowledge. Use of social network is playing an increasingly important role for the decision-makers, as they utilise the tools and mediums before them to engage their decision-making processes. Social network has become a focal point for businesses, and every organization has realised that the ability to connect with people, directly, will have a positive, and even profound effects. Building visibility and effective networking is all about building relationships. Successful organisations have realised the importance of networking and relationship marketing. It’s about building long-lasting connections with the world. Relationship marketing involves building deep networks strongly rooted in a bond or connection that is developed over time with other people. As the relationship grows, fed by mutual trust and shared benefits, they evolve through three phases: visibility, credibility and profitability.

In order to capitalise opportunities, organisations need to have a well-designed layout; thus eliminating waste. They must focus on building world-class facilities to produce & deliver products as per customers’ requirements consistently and seamlessly. acility planning (land, buildings, equipment, furnishings) provides the physical capability to add value. Facilities are expensive and their lifetime is in decades. They take years to commission and, by nature, they are one of the most important strategic elements of a business enterprise. Many symptoms of inappropriate business architecture and stagnation appear as layout or material handling issues. That is why facility design and strategic thinking - that should precede it - are so important. Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenisation and setting up world-class manufacturing units with stateof-the-art technology. Every stage of product evolution –design, development, manufacturing, assembly, and quality control – is carried out meticulously. The Pune unit houses a vehicle manufacturing complex, which is one of the most integrated automotive manufacturing centres in the country. Some of the aspects that need to be taken into account while designing facilities are: a) Choosing the right location: Aligning the location-to-business plans gives a tremendous cost advantage. Some of the considerations while selecting the location include: • Proximity to markets • Proximity to input materials: This includes raw materials, services, and skilled manpower, eg. Cement and power plants are best located nearer

to limestone mines or coal fields. Setting up auto component facility in or near an auto cluster can bring better access to skilled manpower. • Transportation and logistics requirements: Having an exportoriented facility in an SEZ or closer to port can reduce costs by five to eight per cent. b) Right layout design: The right layout design has a number of benefits, viz. less effort, better flow of material, flexibility to modify layout based on product changes, capacity to absorb future expansion, etc. An organisation in the heavy equipment industry has designed its facility on lean principles. This has improved its efficiency and effectiveness, including reduced transport time, inventory movement on the shop floor. better visibility & traceability of orders, and balanced capacities across equipment, to ensure lower lead times, thereby ensuring faster delivery performance. c) Providing the right facilities: Office areas, training facilities, R&D centre, visitor areas, etc. add up to making a world-class facility as well as in improving productivity and reducing attrition. At a manufacturing facility in Japan, employees are forced to take a break every two hours. The lights go off and employees retire to a relaxation area, which has a smoking room, vending machines providing snacks and refreshing drinks, as well as a lounging area. Similarly, space for adding new products, expansion for demand growth etc, during

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the design stage greatly reduces complexity in later stages. Organisations striving to be world-class, build a master plan aligned with their long-term strategy, to avoid costly mistakes. At an equipment assembly plant, a single-piece flow line was designed, leaving space for two additional stations. Space being a premium, there was a great pressure to release the space for a different assembly. Thankfully the management recognised the reason and the space was left unutilised. Within a year, the demand had increased by 100 per cent. Thanks to the vacant space available, one new workstation could be accommodated. This rebalanced the work content and thus, enabled a quick response to the customers. Millions were saved in new facility costs. d) Making the facility visually appealing: A visually appealing plant, with great landscapes, lots of greenery, and neatness, combined with visual controls guiding the visitor during his/her trip, gives out a lot of positive vibes about the culture of the organisation, and can hence, greatly impress visitors. The outlook for Indian manufacturing remains strongly positive. Outsourcing, collaborative manufacturing and growth are going to continue. In order to capitalise the business opportunity, organisations need to have a well-designed layout, thus eliminating waste. They must focus on building worldclass facilities to produce & deliver products as per customers’ requirements consistently and seamlessly. Once an organisation gets recognition, either as preferred supplier or supplier who can meet the product quality requirements, it can be leveraged for sustainable business growth.

PILLARS OF GLOBAL COMPETITIVENESS

Before striving to be price competitive, cost competitive or technologically competitive, organisations should become quality-competitive through customer focus and strong quality management systems. uality focus has become a pervasive element of business strategy today. This is the reason why quality management earns growing respect from top managements. To be successful, quality management system need to be fortified through: - The right organisation structure - Capability building via training on problem solving tools and mathematical & statistical techniques - The right metrics at the plant, department,

defects. Techniques to ensure the same include: 1) The ‘define – measure – analyse- improve – control’ method of Six Sigma, which uses a mix of qualitative tools such as fishbone analysis and brainstorming as well as statistical tools, and 2) Quality maintenance methodology of TPM, which uses a 10-step approach to reduce and eliminate defects. A proper application of these methods can reduce the time required to completely solve problems, by half, and give manytimes-the-benefit when compared to an ad hoc process of problem solving.

provide a corrective and preventive action (CAPA) plan for meeting SLAs. If effectively implemented, internal customer focus reduces the probability of defects reaching the customers by up to 100 times. Quality improvement & new product and process development: An equally important part of quality management is to continuously improve quality and develop new products in line with customer requirements. To do this, there has to be a plan to meet customers regularly, monitor market trends and

and individual level. A great quality management system has the following components: External customer focus: Customer complaints can reduce credibility in the market and impact the top line of organisations. It is important to address two aspects – complaint handling process and complaint elimination – as part of a quality management system. An efficient complaint handling system ensures prompt meeting with customers, understanding complaints, quick relay of information to the manufacturing plant, rapid analysis & response to the complaint and closure; all within a few days. Complaint elimination requires a structured methodology to understand and eliminate the root cause(s) of

Internal customer focus: Bringing in a focus on internal customers is essential to ensure quality improvement. One of the ways of bringing in internal customer focus is the concept of self and successive checks, which was made popular in TQM. The idea of self check is for every operator to check his output quality and deliver only good quality output to the next station. Another way of bringing about internal customer focus is through service level agreements (SLA). Every internal supplier-and-customer pair signs an agreement with key quality parameters; along with target levels and tolerance ranges. Customer departments raise complaints when the parameters go beyond the tolerance limits. The supplier departments then analyse and

finally, convert the information into a plan for quality improvement and new product development. Quality visibility: It is imperative that quality information and the impact on operations be made available to everyone in the system. Here are some of ways in which visibility can be improved: a) Putting up quality metrics b) Display of samples related to customer complaints on the shop floor c) Discussion of customer and SLA complaints with all members in the team and getting everyone to participate in the action plan for correction and prevention d) Visual displays of do’s and don’ts for processes.

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To achieve sustainable cost reduction, companies must first stabilise their cost environments and then move into transformational alternatives. The goal is to create a culture in which cost is seen as an investment and is optimised across the entire business model through quality management information. ndian companies have a responsibility to live up to the worldâ&#x20AC;&#x2122;s expectations as being a low cost manufacturing base. Competitive and economic pressures such as volatile demand and shrinking margins are forcing companies to continuously reduce costs to stay competitive. To meet the cost challenge, companies respond in a variety of ways, which are often disruptive and unsustainable. Some companies turn to short-term cost cutting such as manpower reduction, budget cuts for consumables & spares or lower inventories to reduce cost. Others may take up multiple large initiatives such as ERP implementation and acquisitions to improve business performance. However, most of these prove unsustainable in the long run. Organisations, therefore, need to work on how to make cost reduction sustainable. Broadly, sustainable cost reduction comprises of two elements, namely, cost conservation and the culture of cost management. The cost conservation element leads to tangible cost reduction. While the second element is about creating a culture of cost consciousness and continuous improvement, leading to sustainability of benefits achieved. Companies that address both these

elements realise substantial tangible operating and discretionary cost savings. They also benefit from clarity of cost drivers, financial discipline, immediate cost control stabilisation and reduction of waste to enable sustenance. In order to achieve successful, lasting and effective cost reduction, a company should begin by building a strong foundation. Some of the elements of a strong foundation include: Analysis of cost drivers: A core team needs to be formed. It should comprise of various functions to analyse current costs in order to understand key cost drivers. They would also need to look for possible benchmarks in their peer group or within the industry, to identify the gaps and opportunities for cost reduction. Creating awareness: Often, the management is wary of disclosing cost data to one and all. Sustainability can be achieved only when relevant cost data is transparently shared and awareness on the consequence of work practices on costs is raised. Leadership has an important role to play in making costs transparent through the organisation.

THE SUSTAINABLE COST REDUCTION JOURNEY Discretionary Spend: Discretionary spend

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is typically the first area to get scrutinised; and rightly so, since it is not essential to business operations. Companies need to segregate the essential and nonessential costs. Assessing and challenging this type of spend centrally will help reduce any resentment about cutting these expenses. Clarity of operating cost drivers and financial plans: The best way to bring about clarity is to deploy business level goals to individual members, eg. a key cost-driver for manufacturing plants is power and fuel cost. Dividing the total cost-gap, based on equipment/process/section, and making individuals or teams accountable to achieve these, will bring better buy-in and faster improvement. Contracts and third party spend: Many companies experience cost leakage as a result of inadequate processes around contract management of third-party spend. Major contracts, especially long-term ones, are particularly ripe areas for reducing costs. Often, those managing the execution of the contract were not involved in its negotiation and, consequently, do not understand the terms and cost drivers; at least not as well as the vendor does. A 5-10 per cent cost reduction is possible through the following areas: Zero based costing: Understanding vendor cost drivers and cost build-up for product/service contracted

PILLARS OF GLOBAL COMPETITIVENESS

Reducing waste, eg. higher weight of component than specified Recoverable claims for non-adherence to contract terms, which are often let go because of possibility of protracted negotiations and improper contract formulation Value engineering Reducing locked capital - through better communication and avoiding demand amplification. Transformational initiatives for total cost management: As early initiatives reduce costs and improve cost consciousness, it is required to bring in transformational approaches such as lean management (based on the Toyota production system), which

The cost reduction journey is often a cycle, which has to be reviewed and revisited semiannually and annually in order to refine the strategy. This is based on external stimuli such as market needs, competitors, new products, substitutions, etc. help in changing the way value is created for customers and identifying & eliminating wastes that were earlier considered normal. Lean management helps in creating a continuous material flow across the value stream. It also helps in aligning support to business processes, with the core manufacturing process; thereby optimising costs at the business level. Cost management and control focusses on changing behaviour and building that culture â&#x20AC;&#x201C; of cost consciousness â&#x20AC;&#x201C; throughout the organisation. To do this, a behavioural change is necessary in the following areas: Financial management and control: Bringing in an alignment between cost accountability and the authority to manage cost drivers, as well as revising outdated delegation-ofauthority policies as the types and sizes of expenditures being made are important aspects of sustenance Business process activities: An analysis of business processes and activity drivers will shed light on the interventions necessary to control and reduce spend. These are often unique for each company. The availability of accurate and timely financial-and-keyoperating metrics enables management to assess business performance and take action, when necessary, to achieve savings and promote continuous improvement. The cost reduction journey is often a cycle, which has to be reviewed and revisited semi-annually and annually in order to refine the strategy. This is based on external stimuli such as market needs, competitors, new products, substitutions, etc. To achieve sustainable cost reduction, companies must first stabilise their cost environments and then move into transformational alternatives. The goal is to create a culture in which cost is seen as an investment and is optimised across the entire business model through quality management information. This culture enables cost reduction gains to be sustainable. Cost management is a key issue today and will continue to be one, for the foreseeable future. How companies manage this issue may well mean the difference between simply surviving and successfully positioning the company for future growth.

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In order to be successful, organisations must treat global sourcing as they would treat a very significant strategic project; with its own investment, risk, costs and benefits. For companies involved in global sourcing, an integrated strategy is a key to success. lobalisation has laid the groundwork and brought about a profound change in the way companies source and manufacture products. Global sourcing is experiencing robust growth. Cost is still the major driver of global sourcing activities; however, more mature companies are shifting their focus to global sourcing strategies that create better products, minimise the impact on the environment, and enhance collaborative supplier relationships. For companies involved in global sourcing, an integrated strategy is a key to success. In its earlier stages, global sourcing really meant low-cost-country-sourcing. The simple objective was to source products or components from a country with low labour costs, thereby achieving a cost advantage and a more competitive price. For some companies today, thatâ&#x20AC;&#x2122;s still the main objective. In our view, however, true global sourcing is considerably more complex and has a more strategic objective. Cost is, by far, the main driver of global sourcing activities. However, in deciding new sourcing strategies and locations, quality emerges as the most significant concern. Given the potential repercussions of a product failure, active steps are needed in order to manage the risks. Hence choosing the right supplier and applying rigorous quality control procedures are critical. Risks associated with global sourcing can be classified as: Supply risks, supplier performance, technology trends, control

risks and environmental risks. Supply chain risk can formally be defined as the potential loss resulting from a variation in an expected supply chain outcome. It is the mismatch between supply and demand. Measuring and tracking supplier performance is an important part of successful global sourcing. Early measuring can minimise risk and act as a valuable guide for ongoing supplier development. The typical categories for supplier performance measurement would include financial & commercial measures, quality measures, delivery measures and relationship measures of the suppliers. Availability and transparency of the data & information are typical concerns related to the emerging markets. Hence, no matter how sophisticated the systems are, there is no substitute for physical visits to suppliers to validate whether their operation is up to the standards and claims. The purpose of the global sourcing initiative at Boeing extends well beyond reducing cost. It creates the impetus for culture change and establishing expectations for year-over-year productivity gains. Each of their suppliers is viewed as an enabler, helping them grow their business. On the same lines, Bosch has set up Procurement International India (PII) in Bengaluru. Their job is to identify and develop international quality suppliers in India and further the products to Robert Bosch Plants for worldwide exports. The unit focusses on supplier development programmes in order to meet the stringent quality requirements of automotive industries worldwide.

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For global manufacturers, successful sourcing from emerging markets is not a question of avoiding the risks. Instead, it is about managing them effectively through enhanced vendor selection, testing, monitoring and contract provisions. Enterprises that have adopted comprehensive supply risk assessment and management programmes â&#x20AC;&#x201C; including the leverage of deep supplier and market information - have reduced the frequency of supply risks and outperformed their peers in supply performance and costs. While implementing more rigorous standards is likely to result in higher operating costs, manufacturers have the opportunity to turn this challenge into a competitive advantageâ&#x20AC;&#x201D;building brand equity and commanding higher prices by providing guarantees that their products meet the strictest standards. In order to be successful, organisations must treat global sourcing as they would treat a very significant strategic project; with its own investment, risk, costs and benefits. Companies must become more sophisticated and apply more rigour in their methods to understand both; the risks and costs & savings associated with their decisions. Companies must also begin to look for new ways to differentiate themselves through their global sourcing activities, either through cost, quality, brand or environmental approaches. The good news is that companies are well on their way in recognising what can be achieved by developing a truly global approach and by creating strong relationship with the suppliers.

PILLARS OF GLOBAL COMPETITIVENESS

Supplier development is a strategic investment. It is the process of making suppliers capable of delivering products - of the right specifications and quantity - at the right place and time, as well as supporting the organisations’ strategic goals and objectives. he reality of new economic compulsions - combined with a realisation that ‘doing it alone’ is no longer viable - has started dawning on companies. No matter how prudent your risk management capabilities are, it may be difficult to absorb the shocks rendered by the globalised economy. Organisations are considering a variety of factors in assessing the appropriateness of suppliers. They are also taking initiatives for supplier development to collaboratively meet global challenges.

problems common across all suppliers as well as specific problems for each supplier. Selection of suppliers for development: If the supplier base is large, improving all suppliers at once is not possible. It may be prudent to divide suppliers using proper rationale to make the process more manageable. Creation of a core team: Having a core team with members who are experienced in problem solving, coaching & mentoring and managing change, greatly increases the chances of success of the programme. Programme design: Based on the theme, the objectives for supplier improvement should be set. A timeduration for the programme has to be

come together and refine the goals & objectives for the programme. Developing a shared vision for the programme is a key part of the launch workshop as it creates the right level of motivation and seriousness for the programme. Programme implementation & closure: If multiple suppliers are involved in the programme, imparting training to each supplier is important for success. Creating a schedule of plant visits to guide supplier teams, coaching & facilitating supplier management personnel, and reviewing progress against plan are all important aspects of programme implementation. Once the programme is closed, the cycle can be repeated with a new set of suppliers or a new issue.

THE GROWTH ROADMAP

Developing supplier capability can help in several ways like: Adding value to products and providing cost advantage Improving market access through increased reach Strengthening operations by lowering system costs and cycle times Adding technological strength Enhancing strategic growth by exploiting entry barriers, pooling expertise & resources. However, in most organisations, supplier relationships are arms length with shortterm lowest-cost approach and problems of delivery. Quality and cost are often addressed by changing suppliers or adding multiple suppliers so that operations are not compromised. Suppliers, on the other

Supplier diagnosis: An analysis of supplier performance on quality, cost, delivery and responsiveness to changes, can help in understanding both: systemic

decided, along with an activity plan. The activity plan should include step-by-step actions for various initiatives, review frequency and training calendar. The design should also look at the supplier’s roles and responsibilities, time and cost commitments, and support, which will be provided to the supplier, by the organisation. Programme launch: It is important to clearly communicate the objectives and roadmap. A good way of launching the initiative is a workshop where the organisation team and the supplier team

hand, fail because of improper or ambiguous communication between them and the organisation or because they are incapable of meeting changing needs of quantity, quality, cost and delivery. A methodical approach, which can help suppliers overcome these issues, can result in partnerships based on mutual trust.

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PILLARS OF GLOBAL COMPETITIVENESS

An overall logistics assessment can help organisations reduce logistics costs by five to twelve per cent and working capital by eight to twenty per cent. s a key element of a companyâ&#x20AC;&#x2122;s competitive advantage, logistics has gained momentum across industries. In the wake of improving economic, industrial growth and a bright outlook; transportation and logistics function has several responsibilities to help organisations retain their competitive edge. For logistics to be efficient and effective, there are five key issues: material flow, information flow, turnaround time, logistics cost and performance management. Material flow: This is the operational aspect of logistics. It is concerned with movement and storage of materials & finished products. Material flow starts from the supplier and is completed when finished product reaches the customer. As organisations focus on creating more value at the lowest cost, it is important that material flows smoothly between suppliers, from supplier to the manufacturing plant, within the plant, and from plant to the customer. Smooth material flow helps ensure lower working capital in inventories, lesser production & delivery disruptions and higher customer satisfaction. In the Indian scenario, it is important to have multiple modes of transport, based on available infrastructure, seasonality, etc, to maintain flow of material. Managing outbound logistics is critical for organisations in order to meet time

commitments to global customers who work on lower inventories. Thus, identifying shipping formalities at different ports & countries, building relationships with shipping companies, integrating production planning with ship schedules and reducing container detention charges are critical success factor. Information flow: Information flow and accuracy is often overlooked in logistics, leading to costly delays. Information flow has two components: planning and communication. Planning helps to identify capacity constraints, logistical requirements across the inbound and outbound routes; and inventory & procurement requirements. Post planning, communication of the plan without ambiguity, demand amplification and zeroing in on the inaccuracies to all the key players is important in the logistics process. Information technology (IT) plays an important role in ensuring better information flow across the supply chain between suppliers, transporters, supporting agencies, manufacturing, sales & marketing and warehouses. Turnaround time: Turnaround time measures the time between the vehicle reporting at the loading dock and the time of completion of loading. This is a very parochial measure. Most organisations, however, do not measure the turnaround time. A focus on turnaround time can improve the efficiency of logistics.

Logistics cost: The total logistics cost has multiple components such as warehouse rent & labour, primary & secondary logistics costs, insurance costs, etc. There are multiple ways in which the logistics cost can be improved: Revisiting the bases of how freight costs have been arrived at, eg. zero based costing (ZBC) Better contracting with right terms for detention, delays, etc, and enforcing of the contract terms Understanding and re-engineering the network, including warehouse locations, dealer networks, milk runs, etc. to reduce distances, and thereby, costs. In addition, there may be other issues such as currency rate fluctuations; especially for imports, and hence, may cause cost variations. Performance management: Having the right metrics and a good review system can help in improving efficiency of logistics. It is important to look at material flow as a whole and optimise it to improve efficiency. Both material and information flows need to be studied as processes and mapped to understand the player, process flow and policies, which govern process steps. This process will help unearth disconnects in the process, which increase costs & inventory and reduce logistics efficiency.

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PILLARS OF GLOBAL COMPETITIVENESS

The widespread impact of information systems is increasingly being acknowledged as being fundamentally strategic, as newer IT modules continue to progressively penetrate into core business technologies. n a visit to a Toyota plant, one is awestruck by the efficiency of the operation. A sequence on the assembly line could be a white Lexus with white seats, followed by a fully loaded red Land Cruiser, followed by another Lexus with completely different features and accessories. The right components are delivered to the line in the right sequence. The operators know what accessories and colours each vehicle should have and cars are assembled and completed at a rate of one car per minute! One cannot but wonder how this could be possible? The answer is the power of Information Technology (IT). The production planning department finalises a sequence of cars three days before the actual production. The sequence is communicated to all suppliers through e-mails and extranet. The same sequence, with all features, is relayed to the shopfloor. This is then printed out and attached to every car, when it is introduced on the assembly line. IT has, therefore, helped in improving flexibility and reducing costs of inventory across the entire supply chain. There are various levels of IT implementation in organisations. At a basic level of implementation, organisations invest in basic IT infrastructure such as computers, Internet, e-mail and basic document processing software like Microsoft Office. Organisations also implement accounting software to help with transactions. At the next level, organisations look at integrating the enterprise information flows through an enterprise resource planning

(ERP) system. ERP is an integrated computer-based-application used to manage internal and external resources, including tangible assets, financial resources, materials and human resources. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organisation and manage the connections to outside stakeholders. Built on a centralised database and utilising a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise-wide system environment. In addition, an ERP system can provide a powerful opportunity for many manufacturers to gain critical insight and competitive advantage, by taking them beyond simply managing internal business processes. However, manufacturing organisations can truly leverage IT in a number of ways: 1. Manufacturing Execution Systems (MES): MES is a set of tools and techniques used to convert raw data into information and knowledge. This can help organisations take better decisions and improve operational efficiency. A simple example of MES is performance dash boards with trends, mapped by using the data collected as part of ERP. Another example is detailed scheduling at the shopfloor, based on the production orders released in SAP. 2. Enterprise Asset Management Systems (EAMS): EAMS are used to make maintenance systems robust by organising maintenance data and also supporting maintenance workflows. Examples include work orders release based on preventive maintenance

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schedules, maintaining equipment history cards, providing information & trends on key maintenance performance parameters such as mean time between failures (MTBF) and mean time to repair (MTTR). This helps maintenance personnel take better informed decisions with very little effort. 3. Supply Chain Network Planning (SCNP): SCNP integrates production with procurement, logistics and distribution. This can help in capacity planning, optimising total costs, subcontracts and scheduling agreements, etc., thereby improving efficiency across the supply chain. 4. Customer Relationship Management (CRM): CRM software automates sales & marketing processes and helps in reaching out to potential customers as well as acquiring, maintaining and improving relationships with customers. Organisations are looking towards IT enabled environment (for business solutions) for faster results and progress. Creating the right IT strategy, however, requires organisations to evaluate their business and determine which components of the value chain need to be automated and supported by IT. Rapid technology advancements have introduced major changes in the worldwide economic and business atmosphere. IT developments have sped up communication and transactions. Technology has become the driver of change that is taking place in manufacturing. The emergence of IT has set another trend in the economy of production and the profitability scheme of business firms & corporations.

PILLARS OF GLOBAL COMPETITIVENESS

It is essential for the organisations to have a strong leadership in order to align the growth strategy with the external changes. Through effective leadership, successful organisations have increased overall productivity and positively influenced other key metrics. ursuit of global competitiveness must be coupled with strong leadership and organisational culture. Organisations are increasingly realising that in order to sustain competitiveness, they will have to focus on the people, as, over time, competiveness is driven essentially by talent. To achieve business objectives and stay competitive, organisations must provide employees with a strong leadership and an environment to

building and changing organisational culture. People think differently, conduct business differently and have different expectations. This makes working in a diverse world, more interesting. However, it makes doing business a bit challenging too, especially if the organisations are not well prepared. Whatâ&#x20AC;&#x2122;s normal in our country might be a serious mistake elsewhere. Hence, organisations will have to play a key role to take the lead, keep up with changing business needs and understand the external markets it operates in, in order to be

potential. They have enormous energies and therefore, the role of the organisations lies in making sure that employees confidently give their competent best shot. The challenge for the organisation lies in assisting employees to reach higher levels, quickly and efficiently, thus improving productivity and overall organisational performance. Through effective leadership, successful organisations have increased overall productivity and positively influenced other key metrics, thus directly impacting the bottom line. Leadership can be

express their thoughts. Other elements of competitiveness such as innovation, customer focus, marketing strategy, etc that shape a successful organisation - can be successfully harnessed, only when the right leadership (which aligns purpose with processes and people) is combined with a culture of curiosity, collaboration, learning and transparency. Great leaders have vision and they share their dream with a larger population. Their vision is not only reflected in the organisational vision but also in their actions, beliefs, values and goals. They help people to incorporate their dreams into the organisational vision and set directions for the people to follow. While leaders set the directions for everyone, they also play an important role in

effective. They will have to learn to cross cultural-business-etiquettes and operate in accordance. In addition, organisations will also have to manage from global reporting technologies, to the career and remuneration expectations of emerging market talent and several generations of workers. Proactive companies that adjust their cultural and talent-management strategies to address these changes will be poised to win the best talent. They will be able to build sustainable relationships with engaged workers and take the competitive lead. Today, employees are expecting more from their work. They want the workplace to provide them with a sense of meaning and identity. They want to express, be recognised as individuals, and want to engage their abilities and develop their

supported by the policies, which reward behaviours that are in line with the organisationâ&#x20AC;&#x2122;s vision and values. Globalisation offers an excellent opportunity for organisations to grow. It is essential for the organisations to have a strong leadership in order to align the growth strategy with the external changes. They must recognise that employees are one of their greatest sources of competitive advantage and therefore, through a strong leadership and a collaborative culture, they must be responsive to their needs. They must provide them an environment that meets their aspirations. In order to be globally competitive, determining how to lead change, building a high performance culture and improving organisational effectiveness is essential.

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PILLARS OF GLOBAL COMPETITIVENESS

Organisations need to examine their risk management processes and allocation of resources in order to ensure that emerging risks are effectively identified, assessed and managed from strategic planning to day-to-day processes. n the past, many large scale events – that were once thought unlikely, distant, or isolated – have manifested. These events such as climate change, food insecurity, have changed the course of business for many organisations. Ongoing concerns, such as volatile raw material & energy prices and geopolitical instability, have made an interconnected global economy, both unpredictable and uncertain. These events have brought to the surface a lack of preparedness or effective response. Processes may have been in place to identify, assess and manage risk, but shortcomings became evident where these processes did not systematically refresh, based on changing conditions. Identifying the risk - after it has already manifested can be too late. The agility to detect and adapt to changes in the environment and appreciate the interrelations between events when they occur, emerges as the key, not only to endurance but also new opportunities. So what can organisations do to improve their risk management practices? Risk is, by definition, forward-looking. It’s a measure of the probability of loss or gain, from a given event, and that probability of loss or gain directly affects a company’s performance objectives. Yet, many executives still see risk management and corporate performance

management as separate activities. They focus on avoiding any repetition of known, historical business problems rather than anticipating major changes. But risk management that’s based on prevention rather than prediction fails to prepare a company for the future. It cannot, for example, take account of the sort of shifts that redefine an entire industry. In fact, risk management should be an integral part of a company’s operational and financial performance management. And the measures that the top management uses to manage risk, should be closely connected with the measures it uses to manage other elements of the company’s performance. Neil Doherty, Chairman – Insurance & Risk Management Department, Wharton School in Philadelphia, estimates that a ‘sophisticated and comprehensive’ approach to risk management - in which risk is viewed as an integral part of financial management - can increase a company’s value by three to five per cent. A broad process for integrating risk management with performance management is explained below: Identify what you really need to know: The first step is to ensure that the right information flows to top management. This helps them take proper decisions. Organisations need to define main risks that could help or hinder in achieving strategic, financial and operational objectives. These will obviously vary,

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depending on the company’s individual circumstances and the industry in which it is operating. It is also important to estimate the impact of each risk and its momentum. Select the most critical measure: Look for indicators that can give an idea of how these risks might affect the company’s performance, if they occur. Measures can be financial, such as cost per unit or operational such as inventory and sales. Turn data into actionable information: Once the measures are determined, it is important to incorporate them into the manufacturing information system (MIS). Include absolute numbers as well as trends to help management. However, numbers and trends are useful only when data is correct, credible, consistent, current and complete. Assess the current quality of data and close any gaps. Develop a risk-informed organisation: Use the information to monitor your operational and financial performance, identify any opportunities for improvement or growth and infuse the organisation with a shared sense of responsibility for risk management. Once the links between risk management and performance are visible, you can devise incentives that are aligned with your organisation’s risk appetite and long-term profitability.

With the climate change concerns taking a centre stage these days, every organisation is focussing on ways to reduce their carbon footprint. In the race to become globally competitive and at the same time environment-conscious, companies are taking efforts to go green. hese days, everyone’s ‘going green’. But what does it really mean? Going green is creating an environment-friendly and a responsible ecosystem and lifestyle, which can help protect the environment and conserve its natural resources for the current and future generations. For organisations, going green revolves around operating more cleanly and efficiently, keeping the environment in mind. This offers tremendous opportunities to save money and enhance performance through products, services and business processes. Consumers are asking for greener products, corporate customers are requiring suppliers to adhere to green criteria, shareholders are demanding higher social and financial accountability and governments are demanding adherence to reducing wastes. The implications for a company can be vast and so are the opportunities. Organisations need to look at green initiatives through various lenses of strategy, processes, technology, culture, finance, and law to decide whether they are for big or small changes.

RECYCLING Recycling turns materials that would otherwise become waste, into valuable resources. Collecting used bottles, cans, newspapers, etc, and taking them to the curb or to a collection facility is just the first in a series of steps that generates a host of financial, environmental and social returns.

Common household items that contain recycled materials include newspapers & paper towels; aluminium, plastic & glass soft drink containers; steel cans; and plastic laundry detergent bottles. Recycled materials also are used in innovative applications such as recovered glass in roadway asphalt (glassphalt) or recovered plastic in carpeting, park benches, and pedestrian bridges. Use of recycled products helps organisations to reduce energy consumption and decrease emission of gases that contribute to climate change. ITC’s Paperboard and Specialty Paper Division (PSPD) is one of the leading paper and paperboard manufacturers in India. One of its manufacturing units is exclusively dependent on recycled fibre as are some machines in another unit. By the end of 2011, ITC’s PSPD would be using close to 210,000 tonne of waste paper per annum. To meet this requirement of raw material, ITC has launched a Wealth Out of Waste (WOW) recycling initiative that works towards spreading awareness about recycling, and encouraging people to segregate and dispose waste responsibly.

CARBON FOOTPRINT Carbon footprint is a measure of the impact that our activities have on the environment, and in particular, climate change. It relates to the amount of greenhouse gases produced in our day-to-day lives through burning fossil fuels for electricity, heating, transportation etc. Carbon footprint is made up of the sum of two parts: the primary footprint and the secondary footprint. The primary footprint

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is a measure of our direct emissions of CO2 from the burning of fossil fuels; including domestic energy consumption and transportation (eg car and plane) where we have direct control. The secondary footprint is a measure of the indirect CO2 emissions from the whole lifecycle of products we use; those associated with their manufacture and eventual breakdown.

WATER CONSERVATION Water conservation is a practice in which people, companies and governments attempt to reduce their water usage. One of the most obvious reasons to practice water conservation is in cases where water supplies are limited. It may be practiced in response to rising water prices or to encourage the practice of water conservation, to promote the sustainable use of water. PepsiCo India has been working with the farmers since 1989 and pioneered the concept of contract farming in India. It has taken many initiatives to enhance farmer incomes by improving yields of crops like tomato, potato, and chillies, apart from extending Basmati rice cultivation to newer parts of north India. In line with PepsiCo’s commitment to improve agricultural sustainability and farmer earnings, a new initiative was taken up to promote direct seeding of rice. Direct seeding avoids three basic operations: puddling, transplanting, and standing water, thereby saving about 30 per cent water (0.9 million litre of water per acre). Even if 25 per cent of the Indian rice cultivation can be shifted to direct seeding,

PILLARS OF GLOBAL COMPETITIVENESS

water saving will be equal to the total water consumed by the Indian Industry.

ENERGY CONSERVATION As our non-renewable energy sources are fast depleting, it is important to conserve our current supply of energy or to use renewable sources so that our natural resources will be available for future generations. Energy conservation is also important because consumption of nonrenewable sources impacts the environment. Energy conservation can result in increased financial capital, environmental quality, national security, personal security and human comfort. Individuals and organisations that are direct consumers of energy, choose to conserve energy to reduce energy costs and promote economic security. Industrial and commercial users can increase energy-use efficiency to maximise profits. Here are some of the initiatives that can help manufacturing organisations go green: Understanding the companyâ&#x20AC;&#x2122;s carbon footprint: Organisations need to first understand as to how much are they contributing toward green house gases (GHG) emissions, and then take up

For organisations, going green revolves around operating more cleanly and efficiently, keeping the environment in mind. This offers tremendous opportunities to save money and enhance performance through products, services and business processes.

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targets to reduce emissions. Improvement projects to go green: Organisations need to select the right projects, which can help in meeting the targets. Some of these include: - Developing new products out of recycled material - Using recycled material as inputs in current processes/products - Leakage arresting for water, power, and fuel through better maintenance management - Regular energy audits and auctioning on recommendations - Optimising or redesigning manufacturing processes to reduce

energy and water consumption. Making green, part of operations agenda: Environmental performance indicators need to be added to normal KPIs to ensure that the focus on green is not lost. A regular review of the progress of all the projects is necessary to move and surpass targets. Getting recognised for green: Getting recognised by local, national and international commerce & environmental agencies, can help in motivating the organisation as well as attracting global customers. Recycling energy, water conservation, and reducing carbon footprint are small steps, and if everyone does it, then the outcome would be enormous. These are the simple day-to-day changes anyone can easily make. It will not only help the planet, but will also help organisations save some money. Actions like using alternative energy sources like wind and solar power are a little bigger in scope. In essence, going green doesnâ&#x20AC;&#x2122;t have to involve an all-out change in philosophy. It requires concerted efforts to create an environment that is sustainable and profitable in the long run.

INDIAN MANUFACTURING

ONE ‘Q’, MANY VIEWS

d to quire ition e r s et itie qual kle comp come a e h t c l a nd be s to es al and t ssess uctivity tability a stry need sent o p re od try du ns ndus crease pr to sustai uring in ere we p i g n t, in der cturi ufact on. H nufa velopmen ver, in or the man populati .. a m . e Howe 020, n rking ngers 2 India mic d The ce econo markets. tion by of its wo ame cha a n g l enha he globa ng destin d talents d by the t i e n r r a from nufactu e skills ghts sha a h u top m nd tap t uing tho a g i hone ng & intr i r i insp

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y antl nific skills g i s illion he to has essing t n by 47 m yed. y e r t h s harn latio t lo g indu u n to emp nnin t ring ing and ian pop ducatio lly get een ru of talen ted u t c a p b a lo e w uf Ind ey alen ctu al e man ds deve orking fession they a and hav uous flo d and t , mon n a i d r r e tive e o n d w o l a i r r l o t i n h f o I p e t w k f n s The ibute to ts of th ical and ent, be e initia is a co e that s ine, me rtunitie n t h e r h t n e o r m t o l c h con and ta ng tec mploy taken hat the nt to n n, ma or opp re rta ks me ady re t vidi pro ready fo ve alre n ensu is impo e Ms – oadbloc a t a v r i , i h c f , e e l s e e e p e r id & peo mpani way, on ns. He e. Of th r prov panies. ent ing co this he com tio ossibl l t i a a s e r i agemufactur e s. In rgan n n n v p a a a i e c h S Ind –M Man erner ITI heir o growt men iser – t ous Adv vation & t Fritz W vari tering e make aterial y g o te ra en eopl nd m Stra I Inn Bha he a p on nce of n it in t egy. rate an, CI irector, o e r p i r t m mo porta susta e stra n , Co hair and D cus t y fo e the im ility and ropria e India us on ETH ology; Cmittee a H d S h p o b s t c r ta st H echn Com ap fo ial to ali T ubanie ot re this s t an of LES t th fo s to SAI cturing S omp y do n attain ork ou d grow o need is essen sic case s c n e a e a als o a a w s t f i t s i h i a h u d l r , o T o c t n n y i e e I . p a n d u d e e h a r a g v t n h M I t p a a o e grow ility. In firms h l ensur grow, uring le ample, he com erated stab years, egy wil rder to anufact for ex sses, t so gen m ke, ing oce s al In o trat com g this s ustry. d in the new. Ta ork pr but ha d w e n a i n g c i t e e r n i p h g h Ado facturin stay a someth rs on t workfo ces To u ge its h ervi man design. up wit ing villa crease y. nt S e m e e in in e com . By tra ged to mon anag ire M ITC y mana a F voir onl , Sa not . ctor e r i xing ,D coa ttle s have RAN i l A a H y nt is e ARI alwa caus unda . eds MH it ne try will arts be e an ab country l l a fly; indus unterp includ n the deal g i i t to y se facturin lobal co . These r force ing the ort. d a e u u g p s r l m r n p o s a a o t o u b la m ec er i ’s s a is fact Indi Indian age ov ortant rial and title of b nment The advant o imp mate in the gover AI, w e an PILL rship of tw ly of ra to atta ires th A Y a u i AK Leade supp for Ind , it req AN er, ng hub CH f Public v e N i eo NA How ufactur ISH stitut AKR akya In man H RAD r, Chan cto i D re

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VISION 2020 ONE ‘Q’, MANY VIEWS

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le amp vides ses o r p po try indus ime, it ges, alent uring e same t challen ing the t eds to t c fa e nu on ne th es n ma s, but at tackle th ncy by h stry also ble to India e a u The portunitie order to compet The ind they are eve s li y. t it e op ges. In a g b e h lo t c I llen to enhan rt techno esses so o come, merging a h c e -a st ds ral roc seve stry nee te-of-the s and p the year st of the ctronics hance o du t in sta system cts. In Ele ies en m in & e e l h t th ves pan tter ake rodu ctrica and inmploy be quality p s will m dian Ele dian com ie n n I r I e n e t a v in a p li de n com genda sure th ess. ical & o en My a India iven lectr that tunities. iation is t ompetit ian E MA) d c n r I c o their ent, ion (IEE opp ers’ Asso t resid ur U, P ’ Associa R ufact n D a s N r M E e r H A ctu anufa AL M VIM onics M r t Elec

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GAME CHANGERS

IDEAS

OLD, INNOVATIVE

WHEN GET IT IS TIME TO GET

“An encouraging environment built on good governance, coupled with quality in practices and efficient work methods will ensure that the dream of being the next biggest manufacturing global powerhouse becoming a reality,” believes visionary leader – Hon’ble Chief Minister of Gujarat, Narendra Modi. During this exclusive interview with Sumedha Mahorey, the master strategist shares his intriguing insights on making brand India as the global manufacturing hotspot. Excerpts… INDIA AS THE NEXT GLOBAL MANUFACTURING HUB India is currently in the midst of rapid economic transformation in the global economy and is fast emerging as a premier manufacturing hub. A booming domestic market, a large pool of skilled labour and wage-competitiveness as compared to other emerging economies are some of the important factors responsible for enhancing the country’s reputation in the manufacturing sector. India’s mobile market is the fastest growing market in the world. The knowledge of English and good communication skills are important advantages enjoyed by India as compared to other developing economies in South Asia. In addition, India’s working age population is growing at a healthy rate and is

yet another significant factor in the country’s ascent in the global manufacturing sector. However, along with these advantages there are several other areas where we still have scope for improvement. Capacity building in infrastructure comes first to the mind. There is also great scope to improve in the areas of productivity as well as education. In Gujarat, we have continuously undertaken initiatives to ensure that the workforce and the infrastructure are the best in the country. We have also taken steps to improve the quality of education in Gujarat. In the last six years, the intake capacity of technical and professional institutions has tripled. Greater efforts have been put into imparting quality education right from the school level, through initiatives such as ‘Gunotsav’.

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These efforts have resulted in Gujarat becoming India’s premier growth engine, contributing to one-fifth of the country’s industrial production and almost one-fourth of its total exports. This growth story of Gujarat would not have been possible without the pillars of robust infrastructure, efficiency in governance and the entrepreneurial spirit of its people. Therefore, an encouraging environment built on good governance, coupled with quality in practices and efficient work methods will ensure that the dream of being the next biggest manufacturing global powerhouse becoming a reality.

INDIAN ECONOMY IN 2009-10 The Indian economy maintained a relatively robust growth rate, despite the economic

GAME CHANGERS

challenges faced in many countries of the world. The growth in the country continues to grow stronger due to the substantial domestic demand, which continues to be a solid driver for India’s growth. Beneficial factors such as good monsoon this year have increased agriculture production and given a further boost to the growth process. The economy is expected to expand at 8.5 per cent in the current year, compared to 7.4 per cent in 2009-10, which is a heartening increase. However, the growth rate of agriculture still continues to be a cause for concern and the incomes of farming households across the country still remain a major worry. Gujarat has had these concerns in mind for a while now, and in the last six years, it has held the annual month-long Krushi Mahotsav programme, where agricultural expertise and benefits are taken to the farmers directly. This method of ensuring that farmers receive the benefits directly by gaining the required technological expertise and best practices has driven the initiative to success. Gujarat’s agricultural growth rate has been 12.8 per cent over the last 5 years, which is the highest in India. Over the same duration, the Indian average has been 2.8 per cent, well below the Eleventh Plan target of four per cent. These concerns will have to be addressed with immediate effect, and necessary changes will have to be implemented in the existing set-up. I have full faith that the Indian economy will fare quite well during this fiscal year, and if the problems facing the Indian economy are acted upon with speed and resolve, I am sure that we will be well on our way to a glowing new decade.

YOUR TAKE ON A GREAT LEADER A great leader is focussed, confident and responsible. These are probably the first three words that come to my mind at the mention of the word ‘leader’. A great leader is one who has a clear vision, and is fiercely committed to the idea of implementing that vision. This however does not mean that a leader is a one-man army. All great leaders in history have been considered great only because they managed to take people along with them in their quest for a better world, and managed to make it better at the end of the day. Success has never been moulded by the hands of a single entity. Change cannot be brought about by the actions of one person alone. It takes the support and

strength of many in order to bring about even the slightest change and this means added responsibility for any leader. Positive results are expected and it is imperative that leaders keep their head firmly on their shoulders when in the seat of power in order to think clearly. A true leader is one who recognises the need for change, voices the need for it and works along with the people in order to implement it.

AN EXEMPLARY LEADER There are many who have altered the course of history in their times, and I do not think it is possible for me to name only one leader whom I admire. There are several people I look up to, respect and admire, and there are several qualities in all of them which I wish to imbibe. As the saying goes, “Cometh the hour, cometh the man”; it is only when the darkest hour arrives that true leaders are separated from men. Given this context, here are some leaders I have looked up to all my life: Lord Buddha, or the enlightened one, is one of the greatest leaders in the annals of history. Without conquering any land or vanquishing any army, he managed to win the hearts of millions of people worldwide, and kings and emperors from lands afar still bow to him in respect. He gave us the example of utter commitment, having given up his regal luxuries in order to attain enlightenment. After having gained enlightenment, he dedicated his life to sharing this wisdom with others, which speaks volumes about his selflessness. To learn the teachings of Buddha is to imbibe the ideals of compassion and commitment for a better world, which is the best form of leadership. Mahatma Gandhi was an apostle of peace. With sheer determination and resilience, he managed to topple the might of an entire empire. The non-violent struggle advocated and practiced by him was one of the first of its kind and was the single-most instrumental reason for India’s independence. He mobilised a freedom struggle that had been scattered and divided before his involvement. Bapu, as he was fondly known, was truly the father of the nation. A man of courage, whose frail exterior belied the strength within, he advocated love and harmony at a time when the entire country was falling apart. Sardar Vallabhbhai Patel, the Iron Man of India, was one of the main guiding lights for the country both during our struggle for Independence and the period after that.

Considered to be Gandhiji’s staunchest aide, he acted as a pillar of support all through the struggle. Sardar Vallabhbhai Patel used his magnetic personality and charisma to mobilise the masses of the nation to follow Bapu’s footsteps. Also called the Bismarck of India, he is the man who managed to unify the Indian subcontinent and single-handedly carry out the political integration of the country. Combining patience with grit, politeness with force, he managed to complete the Herculean task of shaping the India we know today. Babasaheb Ambedkar was a man of many talents and vast learning, and yet a man who never forgot his roots and where he came from. The architect of the Indian Constitution, a political leader, jurist, orator, writer, editor, anthropologist, historian, economist and a revivalist for Buddhism in India, he donned many hats, but had his heart set at the right place. Fighting against the social evil called untouchability, he proved that birth had nothing to do with the merit of an individual. Well read and highly intelligent, his socio-political thought has garnered the respect of many over the decades now. A passionate advocate of freedom of the individual, he was brave enough to criticise and question outdated norms and ceremonies in the name of religion. Today, his name stands as a symbol of victory for the downtrodden. Abraham Lincoln, one of the greatest champions of equality and also one of the greatest American presidents ever, has always been a source of inspiration and guidance. Self-taught and self-made, the man who moved from a log cabin to the White House never lost touch with the ground realities he had experienced during his youth. By powerfully communicating a vision of a united nation that motivated and inspired followers, he not only managed to bring about the end of slavery in the country, but also prevented it from splitting into two halves. Having realised very early in his life that ‘a house divided against itself cannot stand’, he set an example of unbreakable political will by daring to go against the privileged classes and winning them over in the long run. The sheer strength of his motivation, coupled with his charisma, managed to tide him and America through one of the most turbulent periods in American history. Even though his life was cut short by a bullet, his ideas have lived on. Admired and respected the world over, he

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continues to serve as a source of guidance they reach out to the people who need for us all. them the most. Cost-effective innovation is Nelson Mandela, one of the greatest the need of the hour, and in this state of flux leaders of our times, is the image of resilience that we constantly find ourselves in, and conviction in the face of gigantic hurdles continuous innovation is required in order and enormous difficulties. Born in a land to fine tune and attune products to meet torn apart by discrimination and apartheid, the demands of the people. It is only in an he refused to accept the plight of his fellow atmosphere of constant innovation that countrymen. Charged with treason, he was sustainable innovation will manage to meet incarcerated for 27 whole years, but while lesser men would have faded away and given in to the physical torture, he consistently Innovation can only thrive when it has refused to compromise his the backing of people. People should be political position to obtain open to new additions and innovations, freedom. Making his voice heard and a certain amount of readiness even while he was in prison, he to accept change is required for new soon turned adversity on its head innovations to reach the masses. and became the voice of reason in a country plagued by racism. Little wonder then, that the people selected him as their leader when he was released from jail. He still continues to act as a source of inspiration and serves as a shining example of the fact that leadership stems from the belief to stand true to what one really believes in.

ACHIEVING SUSTAINABLE INNOVATION There has been a lot of focus on sustainability, and not without reason. The world has its limitations, and it is high time we realised that. The development process has to be a sustainable one, so that we leave a better or at least the same world for our future generations. This commitment is the reason why we devote so much attention to removing carbon footprints wherever there is scope. Gujarat is the first state in Asia, and one of the few states in the world to have created a separate Climate Change Department through which we have undertaken a number of green initiatives. Following Gujaratâ&#x20AC;&#x2122;s Solar Power Policy, a massive programme of renewable energy generation is now underway. Long-term power purchase agreements with 150 solar power project investors are also being considered, which will commission almost 1,000 MW of generation capacity. With sustainable development, however, comes the need for innovation, and then, sustainable innovation. Given that India is not one of the richest countries in the world, helpful measures will be of little use if they come at too steep a price. Innovations and mass customised products should be made affordable in order to ensure that

been performed with over 700 private specialists enrolled in the scheme. The most important outcome though was that the lives of over 7,900 newborns have been saved from death. Gujarat has also managed to make headway with regard to emission control. The state ranks first in gaining certified emission reduction (CERs) credits through the clean development mechanism (CDM) by gaining 41per cent of the total issued to India. The two largest CER credit earning projects in the country are in Gujarat, and private sector companies are reducing their harmful emissions on a huge scale. We hope that our commitment to sustainability, both in development as well as innovations, will go a long way in preserving the Earthâ&#x20AC;&#x2122;s resources for years to come.

ENABLING FACTORS TO ATTAIN INNOVATION its goals. In our own small way, we have adopted cost-effective innovative means to work around problems. The Jyotigram Scheme bifurcates electricity supply for agricultural and non-agricultural purposes. These parallel lines and feeders allow intelligent rationing of electricity, which is a first in the world. This small step has allowed efficient growth in agriculture and the rural industry apart from bringing about a substantial improvement in the quality of life for rural households. Sustainable innovations can only bear fruit in an atmosphere open to change and among people willing to adapt and upscale. In that respect, I am very grateful to the people of Gujarat for being so responsive to our efforts. Gujarat is the only state where ground water levels have increased, and this has been made possible due to our seamless conjunction with the people to construct water harvesting structures across the land. Through mass public participation, Gujarat has now constructed over five lakh checkdams, boribandhs and khet talavdis, securing huge amounts of water for the future. The Chiranjeevi Scheme is another such example of an innovation well received. Maximising our available resources for social benefit, the Government has involved private gynaecologists in providing services related to safe delivery of children by women who cannot afford such services otherwise. This scheme, in fact, has received international recognition in the form of the Asian Innovation Award given at Singapore in October. Over four lakh deliveries have

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When ideas get old, it is time to get innovative. However, when ideas get old by the minute, it is time for continuous innovation. Given this present era of instant gratification, one has to set the aim of achieving far more results in far less time than anywhere else. This requires investing a lot of money and thought into R&D, and even then it takes time for effective innovative activities to bear fruit. However, the most important part of any innovation is its ability to remain relevant to the people who matter the most. Hence we believe that continuous sustainable innovation is the only answer to the worldâ&#x20AC;&#x2122;s burgeoning demands. Innovation can only thrive when it has the backing of people. People should be open to new additions and innovations, and a certain amount of readiness to accept change is required for new innovations to reach the masses. When we announced the rationing of electricity supply through the Jyotigram Scheme, there was that initial scepticism. However, once the farmers saw the year-on-year increase in their yields, they fully welcomed the scheme. Innovation sometimes translates into extreme ideas that are not fully welcomed. We therefore try and reach out to the people to make them aware of the benefits of the schemes. Another key factor to be kept in mind during the process of creation is to make sure that the innovation stays relevant to its place of origin. The people of the country cannot afford expensive technology even though its adoption or usage may be beneficial to them. Hence we try and make

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sure that our innovations stay cost-effective in order to increase the acceptance of the schemes and methods. We also try and provide dedicated support for the implementation of these methods, reducing the opportunity cost for the people directly impacted by these schemes. Through these measures, our schemes have gained widespread acceptability.

STRATEGIES TO GAIN MAJOR MARKETSHARE A number of factors are essential for an organisation to climb the ladder of success. Firstly, for any big or small business, the single most important mantra is to understand the customer’s requirements, gain insights from customer behaviour and then leverage those insights to deliver products that meet the consumer’s expectations. To gain major marketshare, the organisation needs to stay ahead of the market by recognising the demand, the current offering and how it can still improve. Fast execution of projects through proactive government facilitation, regular training and knowledge upgradation of the workforce, innovation & adaptation of latest technology, continuously evolving business models in tune with the changing market conditions are some of the other key factors every company should adopt. Presently, it is not only international players that are setting up businesses in India, but many Indian companies are also going global to acquire bigger businesses. Airtel’s foray into Africa is a prime example. Gujarat has always been known for churning out great entrepreneurs and businessmen. It has been the government’s sincere endeavour to foster an environment that helps them flourish in the state. Today, automobile companies in Gujarat are supplying parts to global automobile giants. Ferrari procures its red colour from a pigment manufacturer in the state. Last but not the least, companies must build relationships with their consumers. In this day and age, social media and electronic communications have become important tools to communicate with the customer and build & strengthen loyalty. The Gujarat Government is constantly building measures to ensure that it can reach out to the people and address their concerns.

WAYS TO STAY GLOBALLY COMPETITIVE All top organisations in the world are built

on efficient manufacturing platforms having strong corporate policies, best practices & services, and behaviours which improved & reinforced their business models. Also, in the current environment, businesses need to focus on technology and innovation to have sustained global competitiveness. To remain at the top, businesses also require a stable administration in the land in which they operate, and favourable policy environments.

BUSINESS SUCCESS SECRETS I believe a person can be successful if he inculcates the values of commitment, vision, passion, hard work and a continuously strives for quality in his work. If one works hard to achieve their goals, is willing to constantly learn & imbibe, then success is imminent. Passion for work can make a man do wonders. There should be an attitude of always delivering quality, however big or small the work is. Lastly and most importantly, for a business to be a success, it needs a leader, a visionary at its helm.

AN INDIAN EXAMPLE OF WINNING AGAINST ODDS After the Pokhran I blasts, fearing international criticism, we had not carried out any more nuclear tests. The Nuclear Non-Proliferation Treaty had been rejected, and the nuclear powers of the world were trying to browbeat India into signing the agreement. However, we refused, and on May 11, 1998, Operation Shakti, better known as Pokhran II was successfully carried out. The pressure had been intense, as American satellites were boring down upon Indian skies hoping to get a glimpse of our preparations. A blanket of secrecy had to be maintained so that foreign countries could be kept in the dark till the right time came. Till the blasts actually took place, no one had taken India seriously as a nuclear power, but after the blasts, the equations changed completely. With India joining the group of countries possessing nuclear weapons, a new strategic dimension had emerged in Asia, particularly South Asia. Sanctions did not last long, foreign threats were nullified. The Bombay Stock Exchange registered significant gains, newspapers and television channels praised the government for its bold decision and editorials were full of praise for the country’s leadership. More significantly, all doubts were erased from the minds of people who questioned India’s nuclear capability after the testing in 1974.

MANTRA FOR ATTAINING COST LEADERSHIP Although cost is an important factor, it is not the single most important factor for achieving an overall leadership. The requirements of organisations, businesses and customers stretch beyond the cost factor. Cost leadership has to be combined with an uncompromising requirement of quality that meets international standards. Excellence in quality will be attained with the diligence and commitment that arises from sound ethics and a motivated workforce. The cost factor needs to be guided with a greater awareness that protection and conservation of the earth’s resources is a vital requirement for future generations. India needs to become a global leader in cost and efficiency as well as quality and sustainable processes.

MEASURING THE SUCCESS OF INNOVATION With the emerging popularity of out-of-the-box thinking, new ideas, new solutions and innovations have emerged as the saviours of this century. Earlier, problems would probably be met with acceptance, but in today’s India, there is no room for passive patience. There’s a certain buzz about the youth of today, who look to question and search for better answers for our deep-rooted problems. Innovation has also gone a step ahead, with the increase in demand leading to the need for constant innovation. This constant quest for better results can only be regarded as positive, and the hunger for knowledge will surely manifest itself in various ways beneficial to mankind and the environment. Innovation can be best measured by the impact it has on the lives of its users. In Gujarat, due to our innovative schemes, there has been all-round development. In our villages, there is a continuous supply of electricity, all weather road connectivity, Internet access and soaring employment rates. This has led to an urban to rural migration, which is a complete reversal of the popular rural to urban migration trend. The development of the cities has meant that businesses worldwide are choosing Gujarat as a preferred investment destination. Overall, the innovation we had invested in is now resulting in holistic growth for all areas of the economy, and the innovation that we are investing in now is bound to reap rich dividends in the future.

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“India is built on success stories, battling against all odds. Disruptive or frugal innovation born from working with limited resources is in our DNA,” avers Tulsi R Tanti, Chairman & MD, Suzlon Group during an interview with Sumedha Mahorey. Excerpts… INDIA’S MANUFACTURING MIGHT Rising population levels contributing to an increasing consumer base and unprecedented economic growth are the key contributing factors to India becoming a global manufacturing hub. However, this also leads to escalating demand for power, and this I believe will be a deciding factor in our nation’s development. India is the fifth largest consumer of energy in the world and will be the third largest by 2030. Today we are heavily dependent on imports to fuel our development. To make it sustainable and secure in the long run, we need to invest in domestic sources, particularly renewable sources of energy like wind. With a strong domestic market, growth based policies and a demographic dividend that is beginning to pay, India has registered robust growth, and I am confident that we have the fundamentals in place for strong long-term growth.

TRAITS OF A GREAT LEADER

WE HAVE THE FUNDAMENTALS FOR

STRONG LONG-TERM GROWTH 80

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Speaking as an entrepreneur, I think some of the India’s great leaders offer the best lessons in leadership. Take Tata and Infosys, for example – together they represent the power of inclusivity, rapid growth and creating shared wealth. I believe these elements, together with the vision to take advantage of global opportunities, make a true leader.

MAKING SUSTAINABLE INNOVATION A REALITY The real value of development lies in being sustainable. And to make sustainable development a reality, we must innovate. Suzlon is one such example where we have applied innovative practices at virtually every step of our value chain to make the company, the market, and our footprint sustainable. We apply frugal or disruptive innovation to not just R&D, but also project services, installation, operations and maintenance. In India, we have built grid infrastructure and power substations, roads, healthcare, education and civic amenities in

GAME CHANGERS

remote areas where our wind farms are located, thereby creating markets for wind energy and opportunities for communities where none existed.

MODELS OF INNOVATION There are various models of innovation, but I believe Suzlon is a classic example of innovation born from scarcity or what is known as frugal innovation. The trigger that led Suzlon to set up a wind turbine business in India 15 years back was the need for reliable, sustainable power to run our textile business, and this led us to install two wind turbines for our textile plant. At that time, investing in wind energy was a challenge for customers, as no one provided a full spectrum of services. We saw this as an opportunity and developed an end-to-end solutions model integrating turbine supply, infrastructure development, installation and maintenance, making it hassle-free for customers to invest in wind energy. This innovative model has enabled us to maintain over 50 per cent marketshare for 12 consecutive years, with a customer portfolio consisting of the leaders of the Indian industry, and I believe

Business secrets to success Be true to yourself Focus on people, profit and planet In every challenge is an opportunity Go where the expertise is Serve as the bridge between talent and market needs Be customer centric. Get close to market and feel the pulse of the customer, this is the key to game changing innovation this illustrates the scope for innovation at every level.

TRIGGER POINTS TO SUCCEED I believe, we must focus on people, profit and planet. Sustainability must be part of business practices. Suzlon’s commitment to sustainable development goes beyond just business. We make a concerted effort to positively impact people’s lives everywhere we operate. We follow a ‘global experience, local expertise’ approach to talent. This gives us the advantage of leveraging local talent and creating a global expert workforce. Similarly, our R&D operations integrate the

best of all worlds. We prefer to leverage local talent to achieve success in key markets.

EXAMPLE OF WINNING AGAINST ALL ODDS… India is built on such success stories, battling against all odds. Take the example of IT and mobile telephony in India’s hinterland – whether it’s making simple financial services accessible through mobile banking or multilingual internet kiosks for farmers that provide information and an online market for their produce – we have taken technology to those who need it, and helped them improve their performance and productivity through it.

COST OPTIMISATION – A KEY... Cost optimisation is certainly important to us. We are working very hard to keep our costs in check and improve our margins. However, while managing cost is very important – it can not be the only factor on which we compete. To be truly globally competitive we must focus on leading in technology, quality, customer centricity and people.

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WE NEED TO FOCUS ON

BUILDING OUR

BRAND

“To make brand India the next manufacturing hub of the world, we need to focus on research & development and design innovation,” affirms V V Paranjape, CEO – Industry Sector & Director, Siemens, during a tête-à-tête with Prerna Sharma. Excerpts…

INDIA TOWARDS BECOMING A GLOBAL MANUFACTURING HUB For India to become a global manufacturing hub, our policies need to be revamped and made more conducive for overall growth. As an employment generator, this is one of the biggest incentives for a government to focus on. I think, manufacturing should be mainly driven by domestic demand, unlike the Chinese model, wherein they focussed on export growth. The consumption of basic raw materials, such as cement & steel, is very low in India. But with fast paced development activities doing the rounds, the scenario is about to change. Therefore, the augmentation of manufacturing capacity will be more because of domestic consumption. And once you have a strong footing on domestic grounds, you can start riding on the export growth wave.

QUALITY CONSCIOUSNESS Since we are talking about ‘brand India’, our quality reputation needs to be spruced up, compared to what it used to be in the 70s & 80s. This shift calls for a very strong certifying body which will look at quality standards and match it to the global standards. When we are vying to compete with global companies, we can, in no way, compromise on these very essential parameters. We should not frame standards which we feel are acceptable in the Indian marketplace. By doing that, we are downgrading ourselves in the global market. Instead, we need to make ourselves ready to attain the quality standards which are comparable globally and have an international repute. Companies need to make concerted efforts to achieve the same.

BENCHMARKING We need to benchmark our performance in order to surge ahead. It’s only through benchmarking that we

will be in a position to recognise competitors. Even the world’s best manufacturing companies have been found wanting to take sizes of individual packets of manufacturing and compare their performance with others. If you take the sigma of the best of all, you will find that it is much better than the number one in the world. Can that happen practically? The answer is, yes! But one has to strive towards attaining that position of excellence.

from the old, traditional mindset of being supreme in whatever we do. This creates indifferences in the team and the employees don’t perform their best, as they are under constant pressure. We have to harness the power of all the people in the organisation and make them understand the importance of innovation. An organisation that succeeds in doing this will be able to sustain their competitive advantage in the coming years.

INNOVATIVE CAPABILITIES

MAKING BRAND INDIA A REALITY

When one talks about innovation, it means that you are actually trying to do something different from the others. Hence, it is the organisation’s responsibility to provide sufficient leeway to its employees, along with a culture that fosters innovation. For this to happen, we have to give that freedom to the people to think differently. We cannot straight jacket them. I don’t know whether all the organisations walk the talk. One shouldn’t repeat the mistakes. They should learn from it. When someone is trying to do something unique, there are bound to be failures. But that’s a part of learning. Making organisations culture-supportive to innovation is also a way of retaining talent because if people realise that they have the liberty of breaking the traditional boundaries and do something unique, they will be passionate towards what they are doing. We have to get away

Making organisations culturesupportive to innovation is also a way of retaining talent because if people realise that they have the liberty of breaking the traditional boundaries and do something unique, they will be passionate towards what they are doing.

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To make brand India the next manufacturing hub of the world, we will need to focus on research & development and design innovation. There is lot of destructive testing that is required to be done. You need to conduct lot of physical experiments. I see a lot of possibilities in the field of R&D, in India. We are very good when it comes to harnessing computing power. All we have to do now, is to bring together the scientific community and the ability to utilise this computing power, in order to eliminate physical testing in R&D. This, in turn, will save a lot of money. We have to make ourselves ready to tap any upcoming, lucrative opportunities, to become the global leaders in manufacturing.

MAKING YOUNG TURKS FUTURE READY We have always been talking about demographic dividend. India possesses enormous demographic advantage. But if that is the case, then why is the industry not happy with what they get? This brings us to think: is the type of education imparted to the people conducive for manufacturing growth and is the quality of education imparted to people adequate? To me, it is a waste of productive man-hours to first educate employees and then train them. Rather, industry-specific courses can be

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introduced in their curriculum, thus saving valuable time. This is where industryacademia partnership plays a crucial rule. The other important issue where we need to focus on is vocational training. Vocational training institutes have not got their due credit towards imparting knowledge to skilled workers. There is a huge shortage of skilled workers who are being trained on different professions such as welding. This is one of the biggest stumbling blocks in our growth.

STRATEGIES TO GAIN MARKET SHARE First and foremost, there should be no distinction between ‘for India’ and ‘for exports’. Quality culture should be ingrained by every organisation. Secondly, we are very good at being frugal. There are various examples where companies have been able to develop products, which are robust, deliver what it promises and is very costeffective at the same time. I think it is in our genes to be frugal, possibly due to the way India has grown. The masses have all been middle or lower class, and they or their ancestors were essentially leading a frugal life style. We also need to direct our efforts

towards attaining sustainable development. This is where we can differentiate ourselves. For this to happen, we need to rediscover ourselves and find our roots to strengthen our footprint in the global marketplace.

TRAITS OF A SUCCESSFUL LEADER A successful leader has to articulate a vision, which is very simple and easy to understand by the common people. The best example of that is what John F Kennedy had said: “We will put a man on the moon and bring him back by the turn of the decade.” He had clearly stated what is to be done and by when it has to done. In a large organisation, if you want people on your side, you need to communicate with them in a language that they understand. Then, you need to form a strategy of how to achieve it. Last but not the least, you need a team with members having specialised knowledge and skills, having respect for each other, and their contribution.

BUSINESS SECRETS TO SUCCESS No two organisations in the world will have similar business traits. In order to succeed in

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the global marketplace and to be globally competent, every company needs to find its own strengths and leverage on the same. Opportunities will be there for all, and if you want to encash upon those opportunities, you need to eliminate your weaknesses.

INDIAN MANUFACTURING 10 YEARS DOWN THE LINE A lot will depend on policy framework. If the policy framework is conducive, then I expect the small & medium enterprises to gain strength, which is necessary for any country aiming to become a developed country. At the same time, we should not give incentives for people to remain small. Remaining small is not a solution in itself. The government needs to find ways to incentivise them on the basis of their performance rather than size. This will, in a way, promote them to move ahead.

INDIAN SMEs GAINING GROUNDS Somehow, good Indian companies have not been able to focus on building a brand. We will have to build our brand and this focus will have to come together by attaining manufacturing excellence.

GAME CHANGERS

GOING GREEN IS NO LONGER AN OPTION BUT A HYGIENE FACTOR FOR GLOBAL MANUFACTURING “With a paradigm shift towards how the manufacturing processes will be performed in the future, manufacturers will now have to make this path more efficient, innovative and green but in a way that it is much more sustainable than it has ever been before,” articulates Jamshyd Godrej, Chairman, Godrej & Boyce during an interaction with Sumedha Mahorey. Excerpts… NEXT WAVE OF CHANGE IN GLOBAL MANUFACTURING In my opinion, the next wave of change in global manufacturing has nothing to do with efficiency and productivity. Instead, it would entail as to how innovation in manufacturing and sustainability & efficiency will enable the manufacturer to produce a completely recyclable & sustainable product

using minimum raw material and the least number of processes. I think that an amalgamation of all these ideas will trigger the next big wave in global manufacturing in the ensuing decades. Formerly, sustainability and environmental issues were considered regulatory issues, rather than being looked at as an integral part of the process. Today,

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the scenario has changed. Now, we introspect on the design of a product and try to make it as eco-friendly as possible, especially in terms of the materials and processes used to manufacture the product. With innovation and sustainability becoming the absolute necessity for the future of product development in

GAME CHANGERS

Formerly, sustainability and environmental issues were looked at as regulatory issues, rather than being considered an integral part of the process. Today, we introspect on the design of a product and try to make it as eco-friendly as possible.

for a single consumer. In such an evolving scenario, the factory of the future has to be totally flexible and adaptable to the evolving consumers’ needs and ideas. It should not be confined to focussing on innovation and sustainability, but also focus on how a product can be manufactured in real-time.

REALISING THIS POTENTIAL manufacturing, companies have to plan from the ground up and then design a product, which is functional as well as sustainable in the consumers’ perspective. Worldover, laws are being formulated to reduce the impact of industrial activities on the environment. Similarly, in countries like Germany, reuse laws are also in place. I believe, the realistion that we need to be sustainable and innovative will take the Indian manufacturing to the next level on the growth trajectory. The manufacturing industry worldover has enormous scope for improvement. Germany has already adopted innovative practices to attain operational excellence, but when it comes to India, we are far off the radar. Having said that it is also a fact that India has the potential and the lead time to move ahead on the growth path and bring innovative practices into the shop floor. This will certainly position India among global manufacturing hotspots. With a paradigm shift towards how the manufacturing processes will be performed in the future, manufacturers will now have to make this path more efficient, innovative and green but in a way that it is much more sustainable than it has ever been before for any country.

ENVISIONING FACTORY OF THE FUTURE Thanks to the realisation of the immense potential that the country has in manufacturing, companies are fast implementing best practices that will not only provide them a competitive lead but also give a distinct identity to the country as a whole. Consumers today are keen to see their ideas and thoughts materialise in realtime. They want to become co-creators by contributing in terms of ideas revolving around the product and its usage. The manufacturer therefore needs to focus on making a customised product even if it were

The mantra to realise this dream lies in connectivity – connecting with consumers, suppliers, and those within the organisation to ensure real-time marketability. Achieving this will offer the manufacturer a point of competitive advantage in the future. Another differentiating factor is based on technology that enables connectivity and is equipped with artificial intelligence. In the future, every part of the process and machinery has to be so flexible that it will recognise the need to take a particular decision. Manufacturers not only have to restrict themselves to manufacturing what the customers want, but also ensure that it is achieved at the right time and the right place. This requires many levels of software coding, machine programming, etc. For me, the factory of the future is a concept in which an idea today is converted into reality tomorrow.

products has changed to ‘whatever product I buy has to be green’. And so, I believe it is about time that manufacturers introspect on every aspect of manufacturing, right from the materials to the end product. The emphasis on eco-friendliness is partly due to legislation and partly due to consumer choice. Presently, consumers react favourably towards a green product. But they are not willing to pay a high price for it. Another interesting insight about going green is that a green product could actually be manufactured at a lower price. It all depends on the reuse and simplicity of the product. Green is thus becoming a hygiene factor in product designing and manufacturing.

TECHNOLOGY ADOPTION BY SMEs I think cluster approach is the way forward for SMEs to ride the growth momentum. To achieve this, we need to work with our suppliers and make the cluster approach work. Additionally, we also need to make them aware of the issues that big players are already facing. In order to ascertain the same, big corporates will have to take the lead. Practicing this approach will, over a period of time, bring a large number of SMEs into the league of global competitiveness.

MANUFACTURING OUTLOOK 15 YEARS DOWN THE LINE Over the next 15 years, we will register a growth of at least eight per cent or may be

CUSTOMER PREFERENCES DRIVING TRANSFORMATION Today, it is not about what manufacturers want, but about what consumers want. Manufacturers today have to gauge what their customers need. Systems therefore, not only need to have this unique capability to evaluate where the process is becoming obsolete, but also be equipped to create a variation of a product depending on customers’ specifications.

Today, the consumers’ outlook towards green products has changed to ‘whatever product I buy has to be green’. And so, I believe it is time that manufacturers introspect on every aspect of manufacturing, right from the materials to the end product.

GREEN MANUFACTURING TECHNOLOGIES Going green is no longer an option, it has become a hygiene factor for the manufacturing industry worldwide. Today, the consumers’ outlook towards green

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nine or 10 per cent. But assuming we will record eight per cent growth over the next 15 years, and we do it in a way that is at least 20 per cent less energy intensive as compared with the other industrialising countries, we can be in an absolutely different paradigm in the manufacturing landscape.

Photo by Priyanka Kumble

A STRATEGY THAT INTEGRATES THE GOALS OF

INNOVATION & SUSTAINABLE DEVELOPMENT IS NEEDED “Innovation plays an important role in ensuring profitable growth. It is essential for the successful commercialisation of ideas and also fits the fundamental transformation of business,” avers Ratan Mardia, MD, Nissan Copper, during an interaction with Sumedha Mahorey. Excerpts… VALUATING ‘BRAND INDIA’ From a developing nation merely two decades ago, India today has emerged as one of the decisive nations shaping the contours of the world economy. Consistently charting a growth path over the last few years, ‘Brand India’ is an idea

whose time has truly arrived. Today, the success of ‘Brand India’ is visible in almost all fields and with some aggressive cross-border acquisitions India has been rewriting the global business equations. The factors, which will make it a reality, are the ever-increasing consumer base and the

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availability of manpower.

INDIAN ECONOMY IN 2009-10 VIS-À-VIS OTHER COUNTRIES Instead of looking at 2009-10 in isolation, it would be appropriate to review the performance of the Indian economy over

GAME CHANGERS

the last few years vis-à-vis other nations. The Indian economy has performed well this year and has come out unscathed despite the aftermath of a global recession. The strength of the Indian economy lies in its resilience to face cyclical economic patterns and still grow year-on-year. One of the major success indicators of our economy compared to other economies is not only our growth rate, but also our consistently increasing GDP. Qualitatively speaking, the advancements and focus on the research and development of Indian companies are sure to propel India into many more successful years. Overall, the economy has outperformed many other nations and has even performed well within the BRIC countries against whom we are pegged in many comparative discussions. It is a great time to do business in India.

TRAITS OF A GREAT LEADER A great leader is one who knows when it is time to make amendments because he is highly attentive to those around him. He takes risks and rightly puts to use the creativity of his followers for the betterment of the organisation. By powerfully communicating a vision that animates, motivates and inspires his team, a great leader is able to transform the organisation. The traits of a great leader are passion, adaptability to change, visualise, motivate and make decisions. I find Sunil Mittal to be a great leader. His relentless pursuit of excellence has fuelled India’s journey to the forefront of the world economy.

SUSTAINABLE DEVELOPMENT DEMANDS SUSTAINABLE INNOVATION Over the past decade, companies have become increasingly aware of the social and environmental pressures various businesses are facing. New demands offer a plethora of opportunities for progressive organisations, and innovation is one of the primary means by which companies can achieve sustainable growth. A strategy that integrates the goals of innovation and sustainable development is needed. In contrast to conventional, market-driven innovation, sustainable innovation must incorporate the added constraints of social and environmental pressures as well as take into consideration the future generations. Amid such uncertainty, sustainable

innovation is often difficult to achieve and is a very risky proposition. Nevertheless, many organisations have revised their business models and these changes are often highlighted in corporate sustainability reports.

ENABLING FACTORS TO ATTAIN INNOVATION Innovation plays an important role in ensuring profitable growth. Innovation happens due to endless opportunities and the emergence of new careers and new markets. It is essential for the successful commercialisation of ideas and also fits the fundamental transformation of business.

STRATEGIES TO GAIN MAJOR MARKETSHARE To gain marketshare, companies need to realise their competitive advantages. In addition, companies should be able to offer differentiated products or services and most importantly, try to invest in the latest technology.

Manufacturers must be willing to rapidly modify their strategies to meet the requirements of the fast-changing demands of the customers, need for shorter product life cycles, and to tap the opportunities to exploit new or emerging markets. In this environment, we believe manufacturers should directly manage the selection, implementation and maintenance of the manufacturing execution system.

PERFECT INGREDIENTS TO SUCCEED IN THIS GLOBAL MARKETPLACE

WAYS TO STAY GLOBALLY COMPETITIVE competition

One example that instantly comes to mind is Anil Agarwal, the Chairman of Vedanta Resources. He has truly made it against all odds by making Sterlite India’s largest nonferrous metals and mining company and by bringing Vedanta Resources to its current stature. Considering that he is a firstgeneration entrepreneur, starting out quite moderately, he has really made it on his own.

Overall cost leadership requires firms to develop policies aimed at becoming and remaining the lowest-cost producer and/or distributor in the industry. Company strategies aimed at controlling costs include construction of efficient-scale facilities, control of costs & overhead, minimisation of operating expenses, reduction of input costs, control of labour costs and lower distribution costs. Our mantra for cost leadership has been to invest in state-of-the-art equipment to retain the cost-effectiveness of our products.

MEASURING THE SUCCESS OF INNOVATION

There is no precise formula for success. However, the factors that have worked for Nissan Copper are passion, focus on strengths, planning, hard work and willingness to adapt to changes. The choice of ingredients would depend on the specific market conditions. However, adhering to quality specifications, customising customer requirements and goodwill will help any company succeed in the global marketplace.

increasing

AN INDIAN EXAMPLE OF WINNING AGAINST ALL ODDS

MANTRA FOR ATTAINING COST LEADERSHIP

THOUGHT-PROVOKING INSIGHTS TO BECOME A GLOBAL MANUFACTURING LEADER

Despite

domestic and international markets, mainly China, our sound global marketing strategies have helped us thrive and grow. We have adopted ways like incorporating technological advances by conducting market research and staying abreast with the latest market trends and developments, competitive pricing of products without comprising on quality and global positioning to tackle foreign competition.

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The older generation of Indian businessmen is conservative, but the current generation is far more liberal when it comes to accepting changes and innovations. The impact of innovation will not be instant; rather there would be considerable lags between innovation and its achievements and outcomes. Therefore, there is a need to focus on specific verticals and over a period of time, to understand and analyse the nature and system of innovation, if any, between innovation and growth. However, the positive impact of SME innovation has been far-reaching and affects the very core of our economy.

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KEY ELEMENT TO BRING ABOUT OWNERSHIP

THE ANY CHANGE IS

â&#x20AC;&#x153;The source of a good innovation is a good problem. The greater the visibility of key problems, the greater is the flow of ideas around solving these, says Naushad Forbes, Director, Forbes Marshall during an interview with Sudhir Muddana. Excerptsâ&#x20AC;Ś

ENABLING INNOVATION TO AUGMENT GROWTH Shop floor innovation lies at the heart of manufacturing competitiveness and is the source of continuous improvements in productivity. The starting point of strong Indian innovation is robust product development and not basic or applied research. Before a product is developed, the needs of the market are taken into consideration and then a solution is designed. But if one is unable to come up with a solution, then one does research.

Research is not the starting point of innovation but the last resort to enable innovation. To me, one single change does not matter. What matters is having many small incremental changes that add up to a substantial improvement. We used to store all the tools in a separate tools storage area and shop floor members drew them as and when they were required. A group of shop floor members then got together and devised a method where they kept all the tools in the shop floor and used a simple method to keep a track of who has taken which tool.

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BRINGING ABOUT CHANGE The key element to bring about any change is ownership. If people identify the change that they wish to introduce, then there is automatic ownership. The second key element in bringing about change is resources, in particular, making the time to make change happen. That is where small group activity or suggestion schemes come in handy.

IMPACT OF INNOVATIONS The source of a good innovation is a good problem. The greater the visibility of key

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GAME CHANGERS

problems, the greater is the flow of ideas around solving these. The greatest benefit is in building innovation capacity; building good robust process – for example, a good Kaizen programme; building design capability; as well as building proprietary technology. As a company, we have done more with design than most other industrial products company in the country.

DRIVING SUSTAINABLE INNOVATION It is important to build a culture of innovation – to make innovation widespread (it must happen everywhere) and continuous (it must happen all the time). As firms, our productivity is still a fraction of similar foreign firms – but some firms are closing the gap. As individuals, our average wage is also still a fraction of that of our counterparts in foreign firms. Innovation is at the heart of the ‘Catch Up’ process for both the nation and firms. According to me, in the early stages in ‘Catch Up’, innovation means exploiting what is known, what others have done. As a firm, exploitation would mean technology

Shop ﬂoor innovation lies at the heart of manufacturing competitiveness and is the source of continuous improvements in productivity. The starting point of strong Indian innovation is robust product development and not basic or applied research.

transfer. The core activity is learning and the core task is implementing known solutions. As one catches up, the emphasis must change – but exploitation remains important. So, what we need to do is the following: Organise to add value through process innovation Organise by getting clever – from process to product and proprietary Build R&D and design capabilities Build a culture for innovation that is effective at exploiting old knowledge and exploring new.

MAKING INNOVATION HAPPEN The involvement of the top management in

building a culture of innovation is vital. Innovation is developing something new for commercial advantage; otherwise, it is not innovation. This something new need not be new to the world or even country – just something new for commercial advantage. Innovation as a new invention is usually by a heroic individual. But innovation is predominantly a team, organisational, anonymous, incremental process. So, innovation is for everyone, not just for rocket-scientists or R&D engineers. My friend Jim Adams (Prof Emeritus, Industrial Design and Mechanical Engineering, Stanford University) has the view that an organisation will reward success but the difference between innovative and non-innovative organisations is how they treat failure and not trying. An innovative organisation tolerates failure and punishes ‘not trying’. Non-innovative organisations punish failure and tolerate not trying. As a company, we have always encouraged our members to experiment and try out new things and no one has ever got into trouble for making mistakes, however expensive.

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GAME CHANGERS

EXCELLENCE AND WORLD-CLASS ARE NOT SLOGANS, THEY ARE ATTRIBUTES OF THE FINEST

BUSINESSES

“Understanding the public policy and market forces that shape the manufacturing landscape is essential to winning in the global economy,” says Rajesh Nath, MD, German Engineering Federation (VDMA), during an interview with Purna Parmar. Excerpts…

MAKING INDIA A GLOBAL MANUFACTURING HUB India has the potential to become an important manufacturing hub for global majors. India has all the requisite skills in product, process & capital engineering and higher education system. India’s low-cost & skilled manpower is attracting a number of companies, spanning diverse industries, making India a global manufacturing powerhouse. India with its vast design skills has attracted a lot of outsourcing technological orders. It highlights the growth in automotive products, automotive components, IT Hardware, investment castings to name a few.

EFFECTIVE LEADERSHIP... it is the ability to successfully integrate and maximise available resources within the internal and external environment for the attainment of organisational or societal goals. A good leader has a vision for which creativity and intellectual drive combined with confidence and humility are needed. Creativity and innovation in methods and ideas are required simultaneously. An effective leader is a person with a passion for a cause that is larger than they are. Additionally, communication, interpersonal

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skills, planning and organisational skills are among the prime business skills needed for a leader to finally arrive at the common goal. A great leader whom I admire is Mahatma Gandhi who symbolises values that preach respect for others. Albert Einstein said the following about Mahatma Gandhi, “Generations to come will scarce believe that such a one as this walked the earth in flesh and blood”.

DRIVING SUSTAINABLE INNOVATION Sustainable development offers an organising framework based on opportunity and respect for human values. Innovation is about using change to meet human needs more effectively. The connection seems

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obvious, although it is hard to realise in the absence of clear market signals and a common language, especially since innovation can occur unexpectedly ‘out-ofleft-field’ and have uncertain consequences on product and collaboration.

STRATEGIES TO FOSTER MARKET PRESENCE India’s positioning in the global perspective will depend upon cost competitiveness of the Indian companies. Continuous emphasis should be laid on new technology/ process/products developed, productivity and quality improvement. Trade liberalisation and proposed changes in the Intellectual Property Rights (IPR) has ushered in new dynamics for the Indian

GAME CHANGERS

industry. There are four types of competitive advantages – low cost, customised products, delivery (speed and reliability), and quality. To attain these companies need to: Understand competitive advantage Determine order winners Increase spend on R&D Improve service and quality through sustained effort.

BECOMING A GLOBAL MANUFACTURING LEADER Access to talented workers capable of supporting innovation is an important factor in driving global competitiveness of manufacturing companies. Talent-driven innovation, cost of labour & materials, energy cost & policies and quality of physical infrastructure are other supporting factors.

PERFECT INGREDIENTS TO SUCCEED IN THIS GLOBAL MARKETPLACE According to me, the perfect ingredients to succeed in the global marketplace are: Understanding the public policy and market forces that shape the manufacturing landscape is essential to win in the global economy. The ability of a company to be competitive in the marketplace is not about advertising or lower prices. It is about a company that has vendors as partners and employees who own the process, as well as a marketing system that completely exceeds customers’ expectations. The ability to put together a strategic business plan that acts as the unique recipe for success. The ability to develop relationships with vendors, employees and customers beyond the normal business relationship. The passion for excellence that requires constant improvement, innovation, and strong relationships. Excellence and world-class are not slogans, they are attributes of the finest businesses.

INDIAN MANUFACTURING FIVE YEARS FROM NOW India has emerged as one of the world’s top ten countries in industrial production as per UNIDO’s new report. Brand India will be the next big thing in the upcoming years. With developed nations trying to

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manufacture and source products from low-cost countries (LCCs), it is predicted that in the coming years, India is likely to gain significantly from this evolving global trend. The biggest USP that will help India leapfrog is its educated cheap workforce. India’s manufacturing exports was US$40 billion in 2002, which will increase approximately to US$300 billion by 2015, that roughly translates into 3.5 per cent in world manufacturing trade. Moreover, the increase in manufacturing exports will create 25-30 million new jobs in the manufacturing domain and add 1 per cent to India’s annual GDP growth rate. However, to go full-throttle in manufacturing exports, Indian manufacturers will need to assume a global outlook, marketing flair, cost-efficiency, and prudently select the product segments to gain the maximum vantage point. Further conducive policies, investment in infrastructure, SEZs and skill enhancement should also be focussed upon to help India climb the export ladder.

Empathy – the degree of caring and individual attention provided to customers Responsiveness – the willingness to help customers and provide prompt service Tangibles – the physical facilities & equipment and the appearance of staff.

AN INDIAN EXAMPLE OF WINNING AGAINST ALL ODDS… Dhirubhai Ambani in the industrial sector is a classic example of how against financial, governmental and infrastructural odds, a single man fuelled with the power of his will to transform vision into reality led to the development of a business empire in India. Another Indian exemplary figure who moved an entire empire was Mahatma Gandhi who armed with the correct social and moral principles connected emotionally to the masses, and intellectually & shrewdly tackled with the British governance in India while fighting for independence solely through the path of ‘Ahimsa’.

WAYS TO STAY GLOBALLY COMPETITIVE

ATTAINING COST LEADERSHIP

The key factors determining global competitiveness of a firm will be: To have a wider acceptance of the market To understand the taste and preferences of the market To cope up and adjust with the local governmental rules and regulations To make a product of superior quality To deal with the prejudice and biased sense of locals, corporate amendments, comparative advantages and disadvantages – natural, physical, geographical and demographical Understanding the market dynamics, imports and exports, demand analysis, market research, branding – in terms of global recognition

Cost leadership, in basic words, means the lowest cost of operation in the industry. It is often driven by company efficiency, size, scale, scope and cumulative experience. So companies wishing to be successful by following the cost leadership strategy must maintain constant efforts aimed at lowering their costs (relative to competitor’s costs) and create value for customers. Cost reduction strategies include: Building efficient scale facilities Establishing tight control of production and overhead costs Minimising costs of sales, production, R&D and service Investing in state-of-the-art technologies. Implementing & maintaining a cost leadership strategy means a company must consider its value chain of primary & secondary activities and effectively connect those activities by: Simplification of processes & procedures. Achieving efficiency & effectiveness Reducing costs Monitoring costs of activities provided by others that interface with the company’s inbound& outbound logistics.

BUSINESS SECRETS TO SUCCESS All businesses are market-led and the five main things customers are looking for when it comes to service are as follows: Reliability – the ability to provide what was promised, dependably and accurately Assurance – the knowledge and courtesy of employees, and their ability to convey trust and confidence

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THE FACT THAT INDIA IS A LEADING DEMOCRACY IS ALSO INTRINSIC TO THE

INNOVATION PROCESS “In India, people are allowed to speak their minds – a prerequisite for any innovation. At most meetings I have attended in India, I have witnessed subordinates challenging ideas put forth by their seniors. This aspect puts India ahead of others,” avers Verne Harnish, CEO, Gazelles Inc, during an interaction with Sandeep Pai. Excerpts… FACTORS THAT MAKE INDIA A MANUFACTURING HUB India has two major advantages – low cost of production and young populace. These factors have significantly contributed towards making the country a manufacturing hub. The average age of the Indian population is 15 years younger as compared to major

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economies, which signifies that there is young talent available to man the factories. In addition, the fact that India is a democratic country makes it easier for India to consolidate its manufacturing potential. Besides, India’s strategic advantage – its central location – gives the country a natural advantage over its competitors.

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SCOPE OF INNOVATION IN INDIA Innovation drives development and so, it is imperative for sustainable growth. As far as India is concerned, there is a tremendous scope for innovation. There is free flow of funds that is essential for driving innovation. In addition, the fact that India is a leading

GAME CHANGERS

democracy is also intrinsic to the innovation process. In India, people are allowed to speak their minds â&#x20AC;&#x201C; a prerequisite for any innovation. At most meetings I have attended in India, I have witnessed subordinates challenging ideas put forth by their seniors. This aspect puts India ahead of others.

Indian company follows suit and becomes globally competitive. Indian companies need to be more focussed if they want to create a niche for themselves and become 100 per cent solution providers in the coming years.

INDIA AS A MANUFACTURING DESTINATION Until recently, Indian companies were leveraging on low-cost manufacturing. But now, it has shifted its focus and is emphasising more on quality. If this trend continues, Indian companies will soon create a niche for themselves in every sector. India is trying to make its way up the value chain by focussing more on technology, innovation, and so on and so forth. If it continues to tread on this path, India will soon become a solution provider for the world.

ACHIEVING SUSTAINABLE GROWTH I would recommend all decision makers in Indian companies to read Hidden Champions authored by Hermann Simon. In the book,

Simon lists three criteria that every company must follow. The book will be able to guide Indian companies in achieving fast and sustainable growth.

PREREQUISITE FOR SUCCESS Indian companies need to be more focussed if they want to create a niche for themselves and become 100 per cent solution providers in the coming years. The country has tremendous potential, but it has to be effectively utilised. Moreover, it is important that Indian companies set out ventures across the world. Examples have already been set in the past. Tata and many other companies have shown the way. It is high time every

IMPORTANCE OF BEING GLOBALLY COMPETITIVE Indian companies are gaining recognition. However, they need to set up base everywhere, or else, they will lose out to competitors. To prove this point, let us consider a scenario where there are two competing firms â&#x20AC;&#x201C; one from Germany and the other from China. The German company wants to set its base in China and vice-versa. The Chinese firm makes the first move and sets up a $100-million plant in Germany in the same town as the German competitor. However, it does not allow the German competitor to get into China and continues to make profit in the German town. The German competitor is losing out. The best way to avoid such a scenario from arising would be moving in faster. Indian firms can take advantage of this scenario by setting up base not in Germany, but in China. Indian companies need to increase their presence. They are so busy taking care of their preoccupations that they are missing out on important opportunities.

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TECHNOLOGY SOLUTIONS TO IMBIBE: PRELUDE

PRELUDE he competitive global pressures call for a strategic and holistic response from the manufacturing organisations – through proven best practices – to make operations world-class. Industry leaders recognise that manufacturing excellence is an improvement journey that takes them well beyond simple compliance. Progress on this journey is not driven by regulation, but by a desire to meet customer needs; live up to stakeholder expectations; gain competitive advantage and ensure long-term success. Companies are transforming the way they work and boldly positioning themselves to meet future challenges. The manufacturing point, ie. the shop floor, is the heart of manufacturing in any organisation. It is a critical and integral part that needs to possess and develop a different set of competencies. This will enable it to: Design or modify work facilities to cater to new products Plan & schedule production; based on the demand pull Design & provide flexible workplace Create & maintain an enjoyable and educating workplace Integrate supporting quality & IT into production process. It should tune itself to serve the dreams of the organisation on the growth trajectory. In other terms, it should transform itself into a ‘super shop floor’ that provides the competitive advantage to the business in this tough market. Many organisations are in the middle of this transformation, in their pursuit to protect and increase business value. The super shop floor achieves this by having a ‘balanced portfolio’ of physical assets, people and processes; coupled with effective planning and execution, as over-investing in one wouldn’t compensate for under-investing in another. The safest designed plant in the world can still have operating upsets if the processes are not standardised and people who run it; don’t have the requisite knowledge and aren’t motivated to act on what they know. ‘Sweating the assets’, though used in finance parlance, is very relevant in the manufacturing context as well. It indicates the organisation’s ability to maximise productivity from physical assets. Many companies look at incremental-targets-on- productivity over previous coordinates, rather than the potential-against-the-investedcapacity. This aspect of super shop floor looks at how the manufacturing system maintains the machines; maximises capital asset productivity and how the workplace supports the same; by being clean and orderly. Too often, regulatory required systems and processes are seen as endpoints, and mounds of paper, substitute for actual elimination of unsafe or unhealthy conditions. For instance, you have a written procedure for starting up an equipment. Assessing the work

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process means that you ask questions about effectiveness: Is the work process actually used? How well does it work? What happens if there’s a problem at midnight? Do operators use the process or make up something on the fly? This part of the super shop floor looks at standardised processes and making it easy to work. Super shop floor requires investment in competent people who are empowered and encouraged to innovate & deliver. This is about integrating human resources with operations and developing & implementing a strategy that includes recruiting, retention, competency, and ends with well-thought-out succession plans. Based on our research and experience of working with large number of manufacturing organisations, we have identified 13 characteristics that a super shop floor must display and master. We have clubbed these characteristics into three portfolios: physical place & assets, processes and people & culture. Portfolio component 1: Physical place and assets • Lean layout • Linear material flow • Reliable equipment • Clean & orderly workplace • Safe & green workplace Portfolio component 2: Process • Capable process • Visual management • Autonomation • Direct to line, through supplier capability development Portfolio component 3: People and culture • Culture of continuous improvement • Leadership on the floor • Effective goal deployment & execution • Competent and empowered employees. Super shop floor is a transformation journey and this journey to transformation-excellence takes energy and hard work. You only succeed if you set goals, provide resources and stick to it. There are no short cuts. It’s about passion, consistency, competency, reliability, innovation and ingenuity. Finally, the effort must be driven by senior leaders; owned and implemented by line management and supported by staff. Line managers must be actively, visibly and passionately involved in creating a super shop floor. Unless the entire manufacturing team is not driven by common passion, the ‘super’ factor of a super shop floor will remain short-lived. S Satish, Associate Director, Avinash Singh, Senior Consultant, under the guidance of Ravind Mithe, Executive Director, PricewaterhouseCoopers

Reducing manufacturing costs through improved plant layout is an effective way to improve profitability. A lean facility facilitates a single direction of flow, thereby ensures optimum utilisation of space and improves productivity. layout describes the configuration of a plant as well as its machinemanufacturingarrangement on floor, which facilitates effective working. Layout of a manufacturing organisation is formed at three levels. The first: plant or macro level. A plant or macro level describes the location of different offices, the distances between them, overall material movement plan, the manufacturing space and raw material & finished goods storage locations, etc. It has the least material movement. Usually, this is the most important level of planning because it sets the focus or basic organisation of the factory. It also sets base for materialmovement time & cost, which is difficult to change. The second level layout is the manufacturing floor layout or the shop floor layout. It describes the location of machines, grouping of machines on defined criteria, material flow direction criteria with material movement plan. Different weight-distance parameters, space coverage ratio and linearity of material flow are looked for in these layouts. The third level layout is called as the micro layout or the workstation design. Here safety and ergonomic principles are given paramount importance. Also, the arrangement of the workstation table, different tooling to be used during work and right storage facilities play a key role. The layout also facilitates problem solving on floor such as having standing discussion rooms on floor, customer war rooms, problem discussion boards, etc.

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Super shop floors have a lean layout. A lean facility facilitates a single direction of flow. This means that the material only moves in one direction during its journey through the plant. Raw material is moved to the machine or assembly; placed in the machine or assembly, and exited on the other side/end to be fed to the next operation. It also encourages small lot or single batch production. Machine orientation facilitates ‘oneman-two-access’, where one operator can attend multiple machines with minimal walking. Machines are grouped as per operation-into-cells, known commonly as ‘cellular manufacturing’. Typically, machines are organised in rows or groups, which means that the operators are required to be around the machines to access them. Parts having similar configurations are grouped and put in a cell to leverage learning curves and standardise/modularise the required tooling. U-shaped cells are typically seen as they provide a number of advantages such as the product begins and ends on the same aisle, communication is improved, and work-in-process inventory is minimised. The U-shape minimises travel distance, ie one operator can ‘move’ the product through the cell if/when needed. However, where U-shaped cells are not possible, smaller machine groupings achieve many of the same effects/benefits. Flexibility to absorb future changes is another aspect one can witness in a super shop floor layout. Some of the manifestations of flexibility are: equipment on wheels (with wheel locks) for ease of re-arrangement, flexible power drops, flexible air connections, light equipment on lockable wheels,

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equipment on skids, etc. The critical idea is to make ‘change’ as easy and inexpensive as possible. Multiple sets of tools need to be available at each workstation or machine. Organisations make the mistake of keeping tools in a locked toolbox or central storage, under the wrong impression that they are controlling costs. But, the time lost at the machines by operators searching for tools, is huge. Point-of-use storage of tools is normally seen on super shop floors. So space on the floor has to be planned accordingly. Vending machines are placed throughout the shop floor for commonly used tools and supplies, and operators/ supervisors are provided with swipe cards that record when, what, and by whom, each part has been used. A lean facility accommodates support personnel as close to the shop floor as space will permit. Traditional plants typically put supervisors, engineers, planners and buyers in offices; away from the shop floor. This configuration contributes to issues of communication, poor visual control and the ‘invisible wall’ that separates the shop floor people from the ‘management’. Super shop floor also provides space for shop floor employees to take breaks, conduct problem solving meetings and conveniently reach physical amenities. Super-shop floors are well ventilated across all seasons, to ensure most productive ambient temperatures. The workplaces are well illuminated to ensure that the operators are able to perform work in daylight-like condition; to avoid errors. These factors go a long way in boosting the employee’s morale.

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Safety & environment are the two indepensible aspects of any super shop floor, without which even the most well known organisations lose credibility. afe and green workplace is another critical aspect of super shop floor. Let’s first talk about a safe workplace. The factories and industrial undertakings (guarding and operation of machinery) regulations - first schedule, classifies dangerous parts of machinery or plant into 17 groups: Revolving shafts, couplings, spindles, mandrels, bars and flywheels In-running nips between pairs of rotating parts

In-running nips of belt and pulley type Projections on revolving parts Discontinuous rotating parts Revolving beaters, spiked cylinders and revolving drums Revolving mixer-arms, in casing fitted with openings Revolving worms and spirals, in casings fitted with openings Revolving high-speed cages, in casings fitted with openings Revolving cutting tools Reciprocating cutting tools Reciprocating press tools and dies Reciprocating needles Closing nips between platen motions Projecting belt fasteners and fast running belts Nips between connecting rods or links,

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and rotating wheel cranks or discs Traps arising from the traversing carriages of self-acting machines.

TYPES OF SAFEGUARD The factories and industrial undertakings (guarding and operation of machinery) regulations require that every dangerous part of the machine must be effectively guarded by any one of the following types of methods or by a combination of them: A fixed guard An interlocking guard An automatic guard

A trip guard A two-hand control device.

MAINTENANCE OF GUARDS Guards should be secured in position and regular & frequent checks should be carried out to ensure that they are kept in position and are in a good condition. On many machines, guarding is enabled by enclosure with hinged sections or access doors. Secure locking devices should be fitted to them and measures should be taken to ensure that they are kept in the closed and locked position whenever the machinery is in motion. In cases where a section of a guard has to be removed frequently to gain access, it is a good practice to interlock the section of the guard with the operating mechanism. Investigations into machinery

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accidents confirm the need for regular inspection and testing of all interlocked guards, automatic guards, trip guards and two-hand control devices. It is strongly recommended that inspections and testing should be carried out at regular intervals.

EMERGENCY STOP CONTROL An emergency stop control is an electrical, mechanical, pneumatic or other control used to stop or de-energise a machine when an emergency occurs. An emergency control overrides all other controls, and therefore, requires a separate control to

restart the machine. In a super shop floor, one can witness that safety is not just a mere compliance but an integral element to the way of working. Now that the safety of the workplace is taken care of, let’s look into the ‘green’ aspect of the same. Green, as an emerging aspect, is also seen normally in the super shop floor, where the focus is that an organisation must produce goods with minimum pollution and carbon emission. Super shop floors ensure low carbon footprints, optimum energy consumption, less emissions and noise.

CARBON FOOTPRINT It is a measure of the impact that human activities have on the environment, in terms

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of the amount of green house gases produced; measured in units of carbon dioxide. It is meant to be useful for individuals and organisations to conceptualise their personal (or organisational) impact in contributing to global warming.

OPTIMUM ENERGY CONSUMPTION While carbon offsets, which fund renewable energy projects, help lower the carbon intensity of energy supply, energy

conservation projects seek to reduce the overall demand for energy.

NOISE EMISSION Industrial noise refers to the jarring and unbearable noises that are created in the factories. Sound becomes noise only if it becomes unwanted, and when the level exceeds that, it is referred to as noise pollution.It has been scientifically proved that noise levels above 85 decibels can cause hearing impairment. Plus, it does not

meet the standards set for a healthy working environment. Heavy industries like shipbuilding and iron & steel have long been associated with noise induced hearing loss (NIHL). This is posing to be a big challenge every passing day. It is a threat to the safety and health of people. Safe and green practices are stressed in a super shop floor, which results in higher morale of people, lesser accidents/near misses and high adherence to environmental norms.

Linear material flow facilitates the lean methodology of production; helps minimise waste and efficiently streamlines product manufacturing, from inception to completion. traightness and uninterrupted material flow is another important characteristic of a super shop floor. Continuous material flow is achieved by implementing pull based production, levelled production, small lot production and reducing waste. Pull based production: A pull system is the one where processes are based on customer demand. This implies that the product gets manufactured in the exact amount desired by the customer at a stipulated time. This ensures that each manufacturing process is in perfect sync with eacg other to deliver final product on time. Here, the production processes are designed to produce only what is deliverable. The

A pull system is the one where processes are based on customer demand. This implies that the product gets manufactured in the exact amount desired by the customer at a stipulated time.

result: no holding of excessive stock levels of raw, part-finished and finished materials. One of main identifier of pull systems comes in the form of having kanban methods in production cycle. In essence, kanban can be described as a visual aid, which is used to show that either the process is completed or the process requires more materials to complete

the task. Levelled production: Fluctuations in production lead to waste. Therefore, they are to be streamlined and reduced as much as possible. In levelled production, rate of production remains constant, irrespective of the fluctuation in demand over a fixed period of time. The objective is to smoothen demand on upstream work centres, manufacturing cells or suppliers, by producing at uniform output and thereby, reducing inventory, eliminating changeovers and improving kanban operation. Small lot production: Small lot production (ideally one piece) is an important component of continuous flow. Lot size directly affects the inventory and schedulling. Small lots reduce variability in the system and smooth production. It also enhances quality in many ways.

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Process capability (Cp) refers to the ability of a process to produce a defect-free product or service. It determines how consistently a product or process meets the performance standard. f the batch performance is more or less around the average, the process is perfectly ok!” This is a common statement on the floor, which indicates that the learning from variability is not leveraged. In best in class companies, one will see a display of batch trends and histogram of outputs with reasons for variation, specified on the graph. Super shop floor improves capability of process by adopting variability reduction, standardised work process, jidoka and automation controls. Process capability (Cp) refers to the ability of a process to produce a defect-free product or service. It determines how consistently your product or process meets the performance standard. Process capability is defined as the spread within which almost all of the data points in the distribution chain will fall within, plus or minus three (or six) standard deviations. The process capability index is used to make the comparison between process capability and specification tolerance. The minimum desired capability index ratio is 1.33 and the greater the better. A control chart is used to determine if the process is in a state of statistical control. State of statistical control is an important indicator because if special-cause variation is found, no assumptions can be made about the future performance

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of the process. If the process is in a state of statistical control, a short-term capability index can be calculated to determine the capability of the process, to produce acceptable product. If there is an evidence of special-cause events, actions are required to eliminate them before additional capability studies can be performed. When statistical stability of the process has been achieved, the next concern is the capability of the process over a period of time that is long enough to include all potential sources of common cause variation. In our experience, sources of variation such as environmental sources eg. humidity and temperature - are often overlooked. Other long-term sources include tool wear, machine wear and subtle changes in raw material. These sources of long-term variation may not have been observed in the short-term study. Statistical process control (SPC) is used to collect and plot data during the long-term study. In the short-term study, if special-cause variation is seen, the study is stopped and the source of variation is eliminated. An important objective of the long-term study is to determine if the process is capable of meeting internal or external customer requirements. Internal customer requirements would be the requirements for the next process while external requirements would be those product

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characteristics that would affect the performance (including reliability) of the end item or customer use product. Creating standard operating procedures (SOP) for processes is done as a step towards variability reduction. SOP defines the inputs, outputs as well as what needs to be done in the process in steps. Operators are trained on SOPs and the SOPs are put up on the walls for ready reference. A refinement in this is using single point lessons (SPL) to complement SOPs where out of all the steps, the step where the variability between people is chosen and the ‘how’ of that step is highlighted. These processes ensure that best practices on the floor are replicated and standardised. An SOP audit is done by the supervising team to ensure adherence. Standard work: Standard work is another principle normally seen on the floor for repetitive jobs. A standard operation is a combination of people and machines carrying out an operation in the most efficient way. Standard operations are composed of three elements: Takt time: The frequency at which a product or service needs to be completed to meet customer needs. Work sequence: The order of operations in which a worker carries objects, mounts them on machines and removes them, etc. This should be distinguished from the processing

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sequence, according to which a product is made. Standard work-in-process: This refers to the minimum work-in-process needed to perform repetitive operations (eg. parts mounted on machines, parts on conveyors, etc). The three pre-requisites for standard operations are typically: Human motions must be central to the operation The operation must be repetitive A supervisor must use the standard

operation as a blueprint for how the operation is to be run. In cases where these prerequisites do not exist, concepts can still be applied in part. Standard work removes operator variability from the process, thereby improving process control. Process automation: Business process automation is computer aided co-ordination of resources, facilities and people, to achieve the desired outcome in such a way that the process is optimised. Business process optimisation is the ultimate level of

automation where optimum utilisation of resources is achieved to obtain superior quality of output consistently. The continuum of business process automation encompasses workflow automation, business process integration, process control and improvements, based on business intelligence and expert systems. Process automation, in its simplest form, is workflow automation where operational aspects of a work procedure are computerised by facilitating flow of information.

Reliable equipment and proactive maintenance through overall equipment effectiveness (OEE) can help identify and eliminate the major causes of poor performance and downtime. eliable equipment is one of the critical constituents of super shop floors. It determines the confidence of the manufacturing system for customer order fulfilment, and is measured through metrics like on time in full (OTIF), which defines actual fulfilment against the promised quantity on the customer shipment promised date. Overall equipment effectiveness (OEE)

efficiency and quality/yield) should be used to capture asset performance information. This data can be used as a basis for specific improvements at the plant floor, operations, maintenance and departmental decisionmaker levels. OEE data (information) is used to identify and categorise major losses or reasons for poor performance. OEE provides the basis for setting improvement priorities and beginning root cause analysis. The use of OEE is also intended to develop

Total productive maintenance (TPM) should be performed on all equipment, as part of the relocation of equipment. Preventative maintenance that replaces bearing, filters, motors, etc. should be done at preplanned intervals; backed by appropriate spare parts. Finally, a predictive maintenance effort is to be taken. It is the periodic evaluation of the equipment to prevent running to failure (temperature readings on bearings, noise levels and

is one of the common metrics used to measure the reliability. OEE is a three-partanalysis tool for equipment performance, based on actual availability, performance efficiency and quality of product or output. Loss data from the OEE factors (availability,

and improve collaboration between asset operations, maintenance, purchasing and equipment engineering. Super shop floors have critical equipment with overall equipment effectiveness greater than 85 per cent.

lubrication analysis). This will help in reducing downtime, machine failure and missed shipments. By having access to idled equipment on weekends or nights, an excellent preventative maintenance programme is possible.

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A clean workplace improves the traits of a shop floor, encouraging focussed procurements and enhancing confidence for long-term sustainability. leaning - the most used (but also, disliked) word is the basic building block of a super shop floor and hence the manufacturing excellence systems (MES). There are correlations of high degree between the cleanliness of the shop floor to the manufacturing performance. Only a clean and orderly shop floor gives the confidence of long-term sustenance of supply. Hence shop floor visits are the most preferred method of assessing a supply system. Super shop floors looks clean and orderly, with defined places and placements for things. The equipment looks clean with no leakages and spillages. There are yellow demarcation lines visible for aisles. Teams adopt the ‘5S principles’ borrowed from Japan. 5S is a simple and logical approach to organising workplace. 5s is a step-by-step approach to move towards a clean and orderly workplace.

STEP 1: SORT Sort out what you don’t need and when in doubt, throw it out. This is easier to visualise but hard to implement as people develop an emotional attachment for things that are around for quite sometime. Different methods are used to carry out this step. One of the prominent ways is to carry out a ‘red tag day exercise’, where people tie a red tag on equipment and/or pipelines, which need to be removed. This exercise brings in involvement of workers and cements their bonding with the next level, as the exercise is carried out, together. Listed on the red tagged items:

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Item classification Item ID and quantity Reason for red tagging Work section Date. The red tagged items are taken to a removal location. There are correlations of high degree between the cleanliness of the shop floor to the manufacturing performance. Only a clean and orderly shop floor gives the confidence of long-term sustenance of supply.

STEP 2: SET IN ORDER Organise what’s left; so as to minimise wasted motion. It is also termed as PEEP (a place for everything, and everything in its place). The idea is to be clear about the placement of machines, storage shelves, equipment, and so on; to reduce the waste of motion. The place for each item should be clearly labelled or demarcated. Items should be arranged in a manner that promotes efficient workflow. Each tool, part, supply or piece of equipment, should be kept close to where it will be used. In other words, it’s about straightening the flow path. This phase can also be referred to as simplifying.

STEP 3: SHINE AND INSPECT Nothing raises a team’s spirit like a clean, well-ordered workplace. This involves:

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What to clean? How to clean? Who will do the cleaning? How clean, is clean? Develop checklists of what should be cleaned Cleaning responsibilities and schedules should be prominently posted and 5S stations should be set up and stocked with cleaning supplies.

STEP 4: STANDARDISE Maintain good working condition by applying standards for S1 to S3. Remember that the best standards are clear, simple and visual. Effective standards make the out-ofstandard condition obvious, eg. an office equipment board tells us: Which equipment are present currently? Which equipment are supposed to be present? Who has taken the equipment? It’s expected return-time.

STEP 5: SUSTAIN Ensure that 5S develops deep roots through involvement. 5S must belong to each team member through promotion and communication (report boards, contests, 5S core group and training). Organisations use a technique called ‘fixed point photography’ where photographs are taken from fixed points and progress is monitored on a weekly/ monthly basis regularly. These fixed points are indicated through a visual symbol on the floor. Once the standard is established, the actual is compared against the standard through pictures.

A well-applied visual management provides a clear perspective of happenings on the floor and alerts the workforce about the status of service levels. isual management is a term used to describe how data and information is conveyed in a manufacturing environment. By using visual methods such as signs, charts and andons (when light is used to indicate information), information is easily conveyed, and thus accessible to those who need it. The current status of processes is immediately apparent. Determining what information needs to be conveyed is the starting point of visual management. Super shop floor uses visual management to improve operations, reduce or eliminate wastes and to make abnormalities visible. The visual management system is designed to create a visual workplace; a work environment that is self-explaining, selfordering, and self-improving. In general, the approach, that is to be taken, depends on two key factors: proximity and complexity. Proximity refers to the relative location of the provider-ofinformation and the recipient. Simple methods such as white boards can be used, if they are located together. When they are separated by great distance, then the tendency will be to utilise electronic techniques. Of course, companies have used creative methods to overcome the proximity issue, eg. one location could simply take a digital photograph of a white board and e-mail it to another location so that both boards could be kept up-to-date and remain ‘matched’. Complexity refers to the amount of information that needs to be communicated, eg. white boards can be very effective to display the status of projects; if the number

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of projects in process is limited; say less than 50. Beyond that, the tendency is to utilise electronic methods. While electronic techniques can prove to be effective communication methods, they tend to lose some of the other benefits previously mentioned. This is due to the fact that the electronic techniques are not as visible in the workplace as desired. To address this shortcoming, some organisations have made use of monitors installed in appropriate locations. Process metrics are typically displayed at the machine or cell. This information is most effective when it is delivered in realtime. Immediate feedback facilitates immediate improvement. Andons are often the centre piece of the visual factory. Work instructions and equipment manuals are typically posted in the production areas. Highly visual instructions - with photographs and graphics - will generally minimise the commonly seen production errors such as people using paper fans to identify if the motor is in operation or a colour changing plant to find the temperature of the pipe. In a super shop floor, general plant information is typically posted in a central location where everyone has access to it. In a visual shop floor environment, information is delivered to inform, alert and motivate. Visual control is a variant of visual management, which are means, devices, or mechanisms that were designed to manage or control our operations (process). Visual control can be implemented using either the actual or analogue items. Actual Items: Designate a position for each item Indicate quantity (or maximum

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level of inventory) Distinguish item from each other Specify form (document) Analogue Items: Colours Shapes (Contour) Symbols Characters (Verbal) Numbers Graphs Electronic lights Sound Touch. At one company, phone system software provided real-time statistics on wait time, dropped calls, etc, by ‘call loop’. However, full benefits of this important information in managing the call centre were not realised until the information was made available to all of the associates rather than just on the desktop computer of the supervisor. By use of monitors, associates were able to know when to lend assistance to each other (between phone loops), with little or no direction from the supervisor. As a result, performance significantly improved. The ‘less overall effort to manage the process’ is not always apparent to people who have no previous experience in such practices. It almost requires a leap of faith. “We will be spending half our day updating boards” is an often-heard retort. However, this is just not the case; not if it is done properly. The responsibility for maintaining various elements of the visual management system is spread among team members. It should always be remembered that all lean concepts are best applied with worker involvement.

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Jidoka aims to find the root cause of problems and makes it possible to rectify them. It is an ongoing system of defect control and therefore should not be thought of as a one-stop-fix to problems. uper shop floor adopts autonomation or autonomous-defectcontrol, which is popularly known as Jidoka (a Japanese word made famous by Toyota). The purpose of Jidoka implementation is to diagnose the defect immediately and correct it accordingly. With this, human related judgment of component quality is minimised and worker will be only attentive, when machine will be stopped. This concept also helps in sequential inspection of components and

correct way; use unique connectors to avoid misconnecting wire harnesses or cables; part symmetry that avoids incorrect insertion.

ultimately good quality products are produced and also not much burden of final inspection is put on the shoulders of worker. Jidoka focusses to investigate the root cause of that problem and make necessary arrangements so that this defect may not occur again. Defect prevention can be achieved by using Poka Yoke technique. Jidorka involves the following steps:

provides a visual control that all parts have been assembled; locating features on parts.

POKA YOKE Poka Yoke is a Japanese word, meaning mistake proofing. Mistake proofing engineers the products or processes in such a way that it is impossible to make any mistakes. Examples include limit switches to assure that a part is correctly placed or fixtured before process is performed; part features that only allow assembly the

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process to identify when parts are incorrectly assembled and built-in self-test (BIST) capabilities in products.

MITIGATION FACILITATION VIA VISUAL CONTROL Visual control employs specific techniques and combining steps to make work easier to perform. Examples include visual controls including colour coding, marking or labelling parts to facilitate correct assembly; exaggerated asymmetry to facilitate correct orientation of parts; a staging tray that

DETECTION VIA ANDON Andon (a Japanese word) is a visual aid that helps in identifying an error before further processing occurs so that the user can

Mitigation seeks to minimise the effects of errors. Example are: Fuses to prevent overloading of circuits, in case of a short circuit; products designed with low-cost and simple rework procedures, when an error is discovered; extra design margin or redundancy in products to compensate for the effects of errors.

ELIMINATION Elimination seeks to eliminate the possibility of error by redesigning the product or process so that the task or part is no longer necessary. It includes product simplification or part consolidation that avoids a partdefect or assembly-error in the first place.

REPLACEMENT Andon is a visual aid that helps in identifying an error before further processing occurs so that the user can correct the problem quickly.

correct the problem quickly. Examples for the same include sensors in the production

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Replacement substitutes an unreliable process with a more reliable one in order to improve consistency. Examples include use of robotics or automation that prevents a manual assembly error; automatic dispensers or applicators to ensure the correct amount of a material such as an adhesive is applied. Jidoka also ensures that the creativity of the manufacturing team is tapped and root cause analysis is performed on the floor.

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Leadership on floor is about the super shop floor managers who ensure that the work culture is continuously fostered and sustained. A leader is the one who leads the workforce by example of his own virtues. enry Mintsberg’s study enabled him to identify 10 different but coordinated sets of behaviour or roles that managers assume. In an attempt to understand the diversity of roles that managers must perform, Henry Mintsberg examined managerial activities on a daily basis. These 10 roles can be classified into three general groupings: interpersonal roles, informational roles and decisional roles. Adopting one or more interpersonal roles is made easier by the formal authority that the manager

you that it is not an easy industry. A real leader will tell you that your income is dependent on the amount of effort you are willing to put into your business. An effective leader will teach you how to make the best use of the hours you have available; which leads us to the next key. As a leader, you need to mobilise the team to get the desired results. A leader must also make sure that the process of attaining the result as well as its sustainability are equally important. Duplication: An effective leader must teach the power of duplication. If your

obtains from the organisation. Leadership on floor is about the super shop floor managers who ensure that the culture is continuously fostered and sustained. While the figurehead role is routine with little serious communication and no important decision making, its importance should not be overlooked. However, establishing expectations, regarding work quality, decision making responsibility, or time commitments to the job, are all outcomes of the leader role that are indirectly related to subordinates. The shop floor supervisor, as a leader, has the five keys to excel. They are: Lead by example: Everything a leader does must be done with honesty and integrity. A true leader will always tell the truth when asked. A true leader will tell

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The challenge for managers, supervisors and leaders is to avoid the historical topdown, autocratic ‘check with me ﬁrst’ management style and instead, embrace a style reﬂective of good coaches, advisors, mentors and facilitators.

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downline is unable to duplicate the things that you do, your organisation will fall apart. Duplication starts at the top. A leader must be more of a teacher than anything else. Self improvement: Effective leaders will always work on themselves; will work on improving the way they perform things and on the way they teach others. They know that the only way to improve

their business is to improve themselves. Sacrifice: A true leader will always sacrifice many things in order to help you grow your business. Listening: If you want to make your business grow, just do what your leader does: listen. They listen to prospect needs to see where they can help. They listen to the needs of their downline to see where they can help. Some of the ways that organisations promote these kinds of traits is by communicating the importance of the same, through multiple forums and recognising

the right attitudes. They also follow a process and create a shared vision in which all the representative layers are involved. The challenge for managers, supervisors and leaders is to avoid the historical top-down, autocratic ‘check with me first’ management style and instead, embrace a style reflective of good coaches, advisors, mentors and facilitators. Good coaches are expected to support the workplace empowerment of employees by encouraging, instructing, guiding and advising. The power that managers have, to influence the behaviour of employees, must be now shared with employees, through the creation of trust, assurance, motivation, safety and support.

UNIQUE CHARACTERISTICS OF SUPER SHOP FLOORS

Self certified suppliers are a boon to the production cycles, as they ensure that components reach the line without the need for a watchful eye. Working with a supplier in a partnering atmosphere will yield high quality product & services. raditional quality systems rely mainly on expert knowledge to ensure that quality is inspected before it is supplied to a line. The quality systems of super shop floor embed quality into products, by imbibing the right processes at the supplier’s end itself and hence, ensure supply of components directly to line. Source inspection is a technique, used to prevent product defects by controlling the conditions that influence quality at their source itself. It is the performance of the supplier’s facilities that increases the customer’s confidence about the supplier’s product quality. Hence super shop floors have selfcertified suppliers with the following certification criteria: Customer and supplier shall have agreed on specifications, which are mutually developed, justifiable and not ambiguous. Supplier shall have no product-related lot rejection for a significant period. Supplier shall have no non-product related rejections for a stated period of time. Supplier shall have no negative nonproduct related incidents. Supplier shall have a fully documented quality system.

Supplier shall have successfully passed an on-site system evaluation. Supplier must make inspections and tests. Supplier shall have the ability to provide regular inspection and test data.

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The key to leveraging the supply base for competitive advantage is tying together the processes, people and information in a way that is aligned with the supply and business strategy. This starts with a focus on best practices.

Benefits of certification include customer/ supplier partnership, direct shipment to stock and reduction of supplier numbers to a manageable level. Working with a supplier in a partnering atmosphere will yield high quality product & services; a common practice observed in super shop floors. Partnering: It means a long-term commitment between two or more organisations for the purpose of achieving specific business goals & objectives. The relationship is based upon trust and dedication for common goals & objectives. A supplier may only take risks in a longterm commitment. Dependency appears as a natural consequence in a long-term

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commitment. It is not a sign of weakness, but a sign of strength of the relationship, and is necessary for competitive advantage. The strength of partnering is based on fairness and parity. Trust enables the resources and knowledge of each partner to be combined, in order to eliminate an adversarial relationship. Each of the partnering organisations must understand the need to satisfy the final customer. These decisions must be formulated and implemented as a team. Similar supplier groups are created to optimise the overall chain and this phenomenon is called as lean supply networks (LSN). Synchronised information flow with suppliers: The key to leveraging the supply base for competitive advantage is tying together the processes, people and information in a way that is aligned with the supply and business strategy. This starts with a focus on best practices. Companies can use supplier relationship management (SRM) solutions to integrate the information from disparate ERP systems into these processes. This requires a sophisticated and robust integration architecture that preserves data integrity and guarantees security. Leveraging the supply base, strategically, is a huge opportunity. Evaluating and selecting such a solution is a critical step towards driving cost savings and ultimately, achieving best-in-class performance.

UNIQUE CHARACTERISTICS OF SUPER SHOP FLOORS

Setting a goal for your workforce helps them focus their efforts on the end result, especially if the conquest brings them suitable rewards too. xceptional performance of level goals of the organisation. Routinely operationally competitive, while at the super shop floors doesn’t reviewing the progress is essential. same time, reflect the appropriate influences just happen. It requires Corrective action must be taken when of customers and markets in which the effective management of satisfactory progress is not made. company operates. Once this top level set all the various factors, In a manufacturing operation, there are of metrics is agreed upon, the deployment constraints and resources. some things that can never be compromised, can be driven by a logical analysis of the One important aspect of management is such as health, safety and environment, but data. goal setting. The top aspect in the hierarchy there are others that legitimately compete Most businesspeople only care about is the mission of the company and is for the time and attention of resources, in the managers and the superiors knowing followed by the goal of the business. different functions within the organisation. what the key performance indicators (KPI) Goals are slightly more abstract targets These are typically in the core areas of are. They neglect the fact that the and they are what motivate us towards the quality, delivery and cost, and it is often the employees should also understand what future. balance of the metrics within these these indicators are and how they should Without motivation, we would quickly categories that determine how an be used within the business. This is grow stale and would not achieve the things organisation is characterised. One of the important because when you are able to that we intend to; which is why it improve their awareness on the is so important for us to be able to KPIs, you are secured that they set realistic goals, both for will cooperate with you when it ourselves and for our company. comes to performing well. This is Not only do the goals need to be because they know that they are Leadership is not about beating people into compliance. motivating and achievable; they being monitored. One of the best It’s not about demanding that people follow you, based also need to be desirable and ways for you to enhance their on your title. If you treat people with dignity and respect, useful. You will see clearly defined knowledge and comprehension you just need to communicate, and let people know how goals on super shop floors; about the KPIs is to use the KPI displayed with responsibility. presentation. you’re going about making your decisions. Goal deployment involves A rigorous review on a routine setting organisational goals and basis, also helps to ensure that MIKE MCCLELLAND, then deploying those goals to everyone remains aligned on the CEO, Do It Best every person in the organisation. organisation’s goals. In this process Every person, in every function, of review, actions are assigned must have clearly defined goals whenever goals are not met and that feed up to and support the next level keys to an effective goal deployment is the an expectation is established that these of higher goals. Ultimately, every person’s creation of a set of high level metrics that must be completed to affect the result goals can be traced to supporting the top take into consideration the need to be before the next review.

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UNIQUE CHARACTERISTICS OF SUPER SHOP FLOORS

The ultimate value of a comprehensive deployment is to drive ownership and accountability at every level so that individuals and functions can fulfil their inherent desire to do a good job more easily without constant management guidance. This achieves a high level of engagement within the organisation and a vehicle to self assessed operational performance, allowing management more time to focus on strategy and tactics. Performance tracking on shop floor: Super shop floors have KPI defined as per key result areas (KRA), which are both, process level and individual operator’s level. These KPIs will help organisation to track progress and will be visible to each employee in understanding his/her performance. An effective method to measure goal deployment is by tracking intended performance on the shop floor. A typical method to do so is to have a board displaying the performance of the unit in terms of KPI. High level of adherence to targets: Super shop floor sets SMART (self-monitoring, analysis, and reporting technology) targets. It is always said that targets must be realistically set. In a typical shop floor, targets

must be set for overall equipment effectiveness (OEE), mean time to repair/ restore (MTTR), etc. The targets must be set by taking previous operational data and it can be benchmarked internally through original equipment manufacturer’s (OEM) specified data or externally benchmarked with any other entity of the same company. Thus, the target, which will be set should be realistic and must be statistically true. Visible shift-wise targets: Motivated operators are the eye for a successful running of shift and subsequently, the plant. The production targets must be realistically set, with provision for downtime (planned), if any. This will help the operators/ employees to make efforts to achieve the targets set by the PPC. Daily management: Daily management is a structured approach to managing daily operations. Daily management of the shop floor helps in achieving the quantifiable goals and objectives, by linking operational metrics to financial performance. Routine management, root cause identification, autonomous maintenance and continuous improvements are characteristics of daily management. A monthly review process is the

cornerstone of effective leadership. During the reviews, critical performance issues are discussed. It is the leader’s job to not just simply participate in this process, but to also use these reviews as an opportunity to mentor, coach, counsel and correct issues regarding overall performance. If conducted properly, the review process will become an effective tool in improving both, executive leadership and the entire team’s performance. The purpose of the review is to acknowledge and maintain good performance as well as improve performance. To conclude, “Leadership is not about beating people into compliance. It’s not about demanding that people follow you, based on your title. When you’re the employer of choice… and again it gets back to culture, and creating an environment where people feel that they are developing personally and professionally. And this culture is not just feel good stuff. I really think in terms of retaining, recruiting the performance, it leads to more successful companies. If you treat people with dignity and respect, you just need to communicate and let people know how you’re going about making your decisions,” says Mike McClelland, CEO, Do It Best.

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The core principle of continuous improvement is the (self) reflection of processes. Its purpose is to identify, reduce and eliminate sub-optimal processes. It emphasises on incremental, continuous steps rather than giant leaps. uper shop floors put in place a continuous improvement culture, in which front line workers and leaders constantly drive process improvement. This implies that the organisation teaches the front line workforce, the process of continuous improvement and then empowers them to seek opportunities to improve operations, without the need to obtain approval from higher up. The most important thing to realise about change or continuous improvement is that it is a cultural shift. Communicating to everyone about what’s going on, and outlining the opportunities to improve, is a common practice in super shop floors. Leaders should actively seek feedback from the different levels within the business; especially in formal settings like huddles and meetings. Some of the dimensions of culture, which one witnesses on the super shop floor are: Operators solving routine problems, through cross functional working: Creating a culture of autonomous problem solving and cross-functional help, wherein operators and staff solve their routine problems by themselves; through crossfunctional exchanges of ideas, within the organisation. As these teams grow in competence and confidence, organisations typically find that they are able to take on more responsibility and get increasingly involved in making day-to-day decisions. If managers are prepared to delegate the

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necessary authority, these workplaceimprovement-teams can grow in stature until they take full responsibility for complete work areas and may eventually evolve into self-managed teams. White collar staff; engaged more in improvement and less on routine: Executives are involved in improving the operation of a specific process or analysing and solving a particular problem, which may have been identified by a workplace improvement team, by a customer or by management. They are management led and can lead to employee participation but not true employee involvement. They are primarily used to resolve the bigger issues, which affect more than one function, and which prevent the organisation from working effectively.

The most important thing to realise about change or continuous improvement is that it’s a cultural shift. A continuous improvement process (CIP or CI) is an ongoing effort to improve products, services or processes. These efforts can seek ‘incremental’ improvement over time or ‘breakthrough’ improvement all at once. Innovation at the workplace: Employees must be encouraged to share their ideas at the workplace, in terms of reducing the effort and time in doing a job, removing no value activity (NVA) for work, and doing things in a smarter way. Proper employee involvement should be achieved through each ladder of the workforce to build a

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better workplace. People must be encouraged to participate in events like brainwave, kaizen so that more ideas are generated, and those of which seem feasible, get implemented. Kaizen Culture: Kaizen is a process of daily improvement; the purpose of which goes beyond simple productivity improvement. It is also a process that – when done correctly – humanises the workplace, eliminates overly hard work, and teaches people how to perform experiments on their workplace, using the scientific method, and how to learn to spot and eliminate waste in business processes. In all, the process suggests a humanised approach to workers and to increasing productivity. Many organisations have benefited by adopting the kaizen culture. These include: Gujarat Government, Reliance Industries, Sydus Cadila, ABB, Bharat Heavy Electrical (BHEL), Asian Paints, Electrotherm, Federation of Indian Chamber of Commerce (FICCI), Godrej Consumer Products, Deepak Nitrite, Crompton Greaves, ISPAT Industries, Indian Oil Corporation, Larsen & Toubro, ITC, Sterling Exports, Thermax, Suzlon, Arvind Mills and Raymond. Cost-sensitiveness across levels: Each and every employee in a super shop floor must be made aware of the cost associated with maintenance and breakdown. This will help the workforce to have a sense of understanding the potential loss to a company – in terms of man hour loss – which in turn, leads to monetary loss to the organisation.

Employees are responsible for creating many of the core competencies that create competitive advantage for the company. Failure to recognise the importance of employee contributions can lead to lower quartile performance regardless of a business strategy. ost organisations see their people for what they are: employees. However, super shop floors see their people for who they are – a mosaic of roles wrapped up in an individual. They allow for, and build their people and leadership development strategy around this, enhancing the individuals’ performance not only at work, but also outside work. This generates a significant RoI at work. Just look at how some organisations in the ‘2009 Fortune Top 100 companies to work for’ are doing it: At least 25 per cent of companies listed, offer on-site childcare Vanderbilt University offers scholarships for kids of employees Baptist Health South Florida helps its employees buy their homes NetApp, ranked no. 1, offers five paid days for volunteer work, provides adoption aid, autism coverage, job sharing, telecommuting and an onsite gym. The company has gained marketshare with no layoffs during recession and has a healthy cash flow. The famous quote reads, “Companies better be prepared to invest in the people they have left because they will lead the resurrection of their company.” So, invest in your people! Karen Ferguson, EVP, Resources Connection Inc., puts it this way: “(companies) don’t have a choice, but to change, and employees have to constantly change with them. I think you have to change your skill set until the

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day you retire.” It is a fact that employees are the ones responsible for creating many of the core competencies that create competitive advantage for the company. It is an undisputable fact that failure to recognise the importance of employee contributions will lead to lower quartile performance and even failure, regardless of your business strategy. Core competence is professed to be the source of sustainable competitive advantage. Employees control and create core competence through their actions and execution. Core competence is built around employee initiative and creativity. This commitment will not flourish in the old workplace environments that, often, were dominated by the ‘slap and point’ method of management or the motivational technique of ‘the carrot and the club’. Manage your assets, but lead your people. That means treating your employees like they are your most precious asset. It requires coaching and mentoring skills. Treat them as a core competence and they will become one. Super shop floors have competent and empowered employees. Competent and empowered employees are best considered as two sides of the same coin. Competent workers can do what they have been told to do but empowered workers do what needs to be done and reflect on how it could be done better, next time. Competent employee: To enable is to provide the means for a member of staff to do the job. Super shop floor builds competent employees by:

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Defining the task or jobs to be done Defining the role of the worker Defining the structures, policies and procedures Getting the ‘back room’ supports running smoothly Ensuring that the worker has the necessary knowledge and skills Ensuring the worker has the right tools and equipment Ensuring the worker has access to appropriate resources Ensuring the worker has supervision and feedback on performance Ensuring fair employment and reward strategies Ensuring reasonable workloads. Empowered employee: Super shop floors empower their employees by giving them freedom and authority to use their skills, knowledge and experience to find the best way to achieve a particular task. This includes: Trusting workers to exercise professional judgment and to take responsibility for decision making and problem solving Trusting workers to be responsible for balancing work requirements and lifestyle commitments Trusting teams to solve problems, allocate work and maximise flexibility Supporting staff and helping them to learn from mistakes and misjudgements Welcoming challenges to the status quo and rewarding innovation & creativity Building belonging and ownership; involving workers in service planning & review, in organisational design & development, and in decision making.

UNIQUE CHARACTERISTICS OF SUPER SHOP FLOORS

Pride in workplace: Super shop floors have employees with a high sense of pride and a feeling of team spirit. The implication is that super shop floor creates a positive work environment where people are motivated by a sense of achievement and accomplishment; where people work because they want to, not because they have to. Leading and participating in teams: In a super shop floor, employees are willingly led and encouraged to participate in performance improvement initiatives. Processes are designed and operated by people. So the only way to improve performance is through people. And the people best placed to improve a process, to make it run better cheaper and faster, are frequently those who operate it every day, and really understand its working. Effective continuous improvement therefore depends on employee being actively involved in improving performance, working effectively in teams to analyse processes, investigate problems and implement solutions. Successful performance improvement depends on the effective operation of these teams. Training: Super shop floors provide training to their employees, to improve their skills based on their need. The employees undergo multi-skills training in areas like technical skills, problem solving, conflict resolution, soft skills, etc. They are also trained about customer requirements, cost pressures, and current outlook of their products and organisation. Training programmes are planned after need identification and all employees are trained to improve their skills. These aspects call for a well crafted human resource (HR) policy. In a super shop floor, HR is more of a strategic partner, an employee sponsor or an advocate & change mentor, rather than just being responsible for employee benefits, administration - often payroll and employee paperwork. HR as a strategic partner contributes to the development and accomplishment of the organisation-wide business plan and objectives. The HR business objectives are established to support the attainment of the overall strategic business plan and objectives. As an employee sponsor or advocate, HR plays an integral role in organisational success via its knowledge about people and their advocacy. This advocacy includes expertise in how to create a work

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environment in which people will choose to be motivated, contributing and happy. Fostering effective methods of goal setting, communication and empowerment through responsibility, builds employee ownership of the organisation. HR helps establish the organisational culture and climate in which people have the competency, concern and commitment to serve customers well. In this role, HR provides the employee, development opportunities, employee assistance programmes, gain sharing and profit-sharing strategies, organisation development interventions, and regularly scheduled communication opportunities.

Companies donâ&#x20AC;&#x2122;t have a choice, but to change, and employees have to constantly change with them. I think you have to change your skill set until the day you retire. KAREN FERGUSON, EVP, Resources Connection Inc

HR links change initiatives to the strategic needs of the organisation to minimise employee dissatisfaction and resistance to change. To promote the overall success of organisation, HR champions the identification of the organisational mission, vision, values, goals and action plans. Finally, HR helps determine the measures that will tell the organisation how well it is succeeding in all of this. Non-individual based incentive schemes: Super shop floors formulate incentive scheme based on team performance, rather than individual performance. Meritocracy based growth of operators: Super shop floor encourages growth of operators, based on merits. When awarding a merit increases, managers consider factors such as the employeeâ&#x20AC;&#x2122;s annual as well as overall performance and potential for future contributions. Well defined reward and recognition (R&R) policy: Super shop floors have polices to recognise and reward outstanding employee contributions that further the goals and objectives of the organisation. R&R policy aims to:

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recognise and promote positive staff contributions that support individual, team, department and organisation goals and objectives provide timely recognition to staff members; either as planned, or immediate recognition provide appropriate recognition based on the significance of the contribution provide both, individual and team recognition & rewards provide for both, manager and staff initiated recognition & rewards encourage improvements in productivity, quality of work, and customer service. Common canteen, with good quality hygienic foods: Super shop floors have a canteen with good layout plan. A common but clean and hygienic canteen, with good food, keeps the employees well fed. This, in turn, boosts up their morale and motivates them to achieve targets at their workplace. All employees, including top management executives and workers, have food in the common canteen itself. This also helps them bond. The canteenâ&#x20AC;&#x2122;s layout must provide for the locations of the kitchen, food preparation room and sanitary facilities. Canteen must have: space allocated to the cooking, preparation or handling of exposed food space allocated to the storage of any kind of exposed food space allocated to the serving of meals to customers space allocated to the cleansing, sterilising, drying or storage of utensils sanitary fitments and drainage works cloak rooms, passageways and open spaces all means of exit, entry and internal circulation all windows or ducts providing ventilation or mechanical means of ventilation wash basins or wash-up sinks, drying racks, water tanks means of refuse storage and disposal. Non confrontationist internal union: Super shop floors have no or non confrontationist internal union with HR realising the importance of being open to all factions of company. HR makes an effort to speak to all people; from the lower management to the top management. On the other hand, internal union participates in all improvement initiatives, which benefits both, organisation and employees.

EXEMPLARY MODERNISATION SAGA

f anecdotal evidences are anything to go by, the earliest production of high carbon steel (known as wootz steel) in the Indian subcontinent was found in Samanalawewa area in Sri Lanka. Its production dates back to around 300 BC. Back then, the steel making method included a unique use of a wind furnace, blown by the monsoon winds. During

DIARY

ced fast-pa cal The ogi l o hn have tec s t n e pm rmed develo ransfo t y l l ng tica acturi drama manuf l e e t s y tering the wa a. Mas i d n I in teel place karo S o e B k a , t n o isatio (SAIL) used t odern India m f f o o y t t he i or the ar with t l Auth d e a e e t S h a y a oving aken b Plant, , is m he efforts t y r a i d h i t lig ts subs auding lity visit high ro l p p A i Boka times. his fac ht of g pany, t i m m o c the turing anufac m e h t lant. Steel P

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those times, the supply used to exactly match with the demand. As decades and centuries passed by, new technologies and processes were hailed by steel manufacturers. However, the era witnessed technological adoptions at a very slow rate, primarily due to the demand factor. This was succeeded by modern day steel making that began in the 17th century, which witnessed the introduction of the smelting of iron ore into pig iron in a blast furnace. Operating a furnace was a difficult and costly affair back then. But as a few centuries elapsed, steel making became simpler and explicit to a certain extent. As a result of the surge in demand for steel production in the latter half of the 20th century, massive changes occurred in the

SUPER SHOP FLOORS: BOKARO STEEL PLANT

steel making process. Organisations had to constantly work towards introducing improvements to survive in the highly technological age. Other companies who remained reluctant to change eventually perished.

LEADING THE WAY Exemplifying leadership in adopting latest technology trends is Bokaro Steel Plant, which contributes significantly to the Indian steel production. Today, brand Bokaro signifies assured quality & delivery, offering value for money. Bokaro Steel Plant has endorsed modern production techniques and is innovating its way to the top. Originally incorporated as a limited company, Bokaro Steel Plant was later merged with Steel Authority of India (SAIL), first as a subsidiary and later, as a unit, through the Public Sector Iron & Steel Companies (Restructuring & Miscellaneous Provisions) Act 1978. Introducing changes in a running facility is not an easy task, but the company has set an example for other companies to follow – a modern day prerequisite for manufacturing shop floors. The plant is hailed as the country’s first swadeshi steel plant and its first blast furnace started operating on October 2, 1972. The first phase of 1.7 MT ingot steel was completed on February 26, 1978 with the commissioning of the third blast furnace. All the units of 4 MT stage have already been commissioned and modernisation in the nineties has further upgraded this to 4.5 MT of liquid steel. Currently, it boasts of having five furnaces and is slowly bringing about advancements in its existing infrastructure.

A DYNAMIC FURNACE A visit to the facility helps one understand the remarkable way in which the company has brought about changes in its numerous shop floors. Recently, it has completely transformed one of the blast furnaces which has not only led to an increase in production and quality enhancement but also ensured the safety of workforce. Bokaro Steel Plant’s Blast Furnace-2, upgraded at a cost of `805 crore as part of the plant’s modernisation and expansion project, is the most modern and largest blast furnace in SAIL. The volume of this furnace has been enhanced from the previous 2,000m3 to 2,500m3, giving an increased working volume of 2,250m3 from the previous 1,750m3. It is designed for a higher productivity level of 2 tonne/m3/day by

incorporating state-of-the-art technology in the furnace, including a higher blast temperature of 1,2000C obtained from newly designed stoves. The furnace is now provided with 28 tuyers and a flat cast house. A Mukhopadhyay, GM – Operations, Blast Furnace, Bokaro Steel Plant, says, “During the upgradation phase, not only design and production features but also health and safety of the workers were considered. Also, the environmental aspects have been taken into account and given priority.”

CAST HOUSE A complete turnaround can be witnessed the moment one enters the cast house. “We have rebuilt our cast house and now, it is a flat cast house. The entire cast house is on the same level and is totally covered. This has made the cast house larger and safer for employees,” he says. Before upgrading the blast furnace, the cast house had level differences, which required manual cleaning by employees. Now, with the introduction of new machines, the task is automated. The size of the cast house can be compared to a tennis court, which speaks of the large area it is built upon. Naturally, the noise levels ought to be higher. But walking in the cast house of Bokaro Steel Plant will change one’s perception about the standard noise levels. Thanks to the number of environment-friendly systems deployed, the company has been able to achieve the target. These systems include stock house dust suppression system, cast house defuming system and gas cleaning plant. Paul Wurth, in consortium with L&T, has carried out the job of the main package and cast house defuming system. Another important feature of the upgraded furnace is that it has a provision for coal dust injection. Sujan Pal, GM – BF Modernisation – Bokaro Steel Plant, says, “This plant is under a stabilisation phase. Once complete, we will use coal dust injection to reduce coke use, which harms the atmosphere. In addition, coke is very costly and scarce and by using coal dust injection, we will be able to reduce our costs as well as dependence on coal.” Apart from these, several design changes have also been introduced in the furnace. “For input charging, there is a new skip system in place now, along with modern technologies for cast house management, stock house management, hot blast &

stoves, back-draughting, gas cleaning, oxygen enrichment, electricals and automation for all existing as well as new facilities,” Mukhopadhyay adds. Moreover, the furnace is now equipped with a closedloop cooling system with demineralised water, having exceptionally high efficiency. This, the company expects, will prove to be economical in the coming years. Earlier, coolers would get burnt (every 4-5 years) because of lower cooling efficiency. By upgrading the furnace, the company expects its campaign life to increase to 16 years from the present eight years. Thus, saving one normal capital repair campaign costing around `60 crore would avoid production loss during capital repairs.

CONTROL AND EXECUTION The plant’s control room has a large plasma TV along with smaller LCDs displaying the furnace’s operational intricacies. Explaining the process, Sanjay Tewary, Chief – Communications, Bokaro Steel Plant, points out, “The screens display all the major parameters of the blast furnace, be it the blast volume, blast temperature, charging status, etc. This operational visibility has immensely benefitted us.” While the blast furnace is currently undergoing transformation, some parts of the facility are at par with industry standards. Take a look…

During the upgradation phase, not only design and production features but also health and safety of the workers were considered. Also, the environmental aspects have been taken into account and given priority. A MUKHOPADHYAY, GM – Operations, Blast Furnace, Bokaro Steel Plant

Once produced, the molten iron (hot metal) is poured into ladles and dispatched to one of the two steel melting shops. In the steel melting shops, the process in operation is known as basic steel making or converter steel making. We choose the route to Steel Melting Shop-2, which leads the way to the second super shop floor at Bokaro Steel

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SUPER SHOP FLOORS: BOKARO STEEL PLANT

The steel produced in the converter shop is tapped into 300 tonne steel ladles and transported to the ladle furnaces of the secondary refining unit (SRU). At SRU, the composition and temperature is homogenised by argon

Photo By Ma

hadeo Sen

These machines have straight moulds and liquid core unbending (for better internal quality), eddy current mould level control system (to reduce mould level fluctuation) and breakout pre-detection system. The casters can cast slabs ranging from 940 mm to 1850 mm wide and 200 mm slab thick. The continuous casting machines are also equipped with high volume (50 tonne) tundishes, which act as an intermediate reservoir for steel to maintain continuity in casting during ladle exchange. Argon is injected in the shroud and tundish nozzle to tly tion at the recen era prevent re-oxidation and nitrogen op in es ye nt emplo blast furnaces in Bokaro Steel Pla pick-up. For better surface quality and one of the largest -2, ce rna Fu st upgraded Bla dynamic air mist cooling, eddy currentSAIL based automatic mould level control has been deployed, which is one-of-itskind in India. Plant. Hot metal from the blast furnaces is A view of the CCS whe Solid steel is formed after it passes re two ladles are sim ultaneously pouring liquid steel into the mo stored in two mixers, each having a capacity through the water cooled moulds. In ulds of 2,500 tonne. The mixers are used to addition, a high-casting speed combined homogenise the chemistry of hot metal with level-II cooling (secondary) helps Photo By Mahade o Sen from different furnaces and maintain its achieve slab quality of the highest order. temperature. Once the uniformity in Thereafter, these solid slabs are further composition is attained, hot metal is then purging from the bottom of the ladles. processed through online slab cutting and sent to 300 tonne converters (the largest in Desulphurisation upto 70 per cent is automatic robotic marking with unique the country). Flux, scrap and hot metal are achieved at SRU by slag composition control identification. The final product from CCS is charged into the converters and refining is and optimising slag-metal interface reaction. mild steel of drawing, deep drawing, extra done with blowing 99.5+ per cent pure For smooth castability of steel at caster and deep drawing, boiler and tin plate quality. It oxygen from the top along with combined to achieve sound mechanical properties, also produces low alloy steels like LPG, blowing technology (CBT). Liquid steel is calcium treatment is also done. At SRU, the WTCR, SAILCOR and API grade. A few of tapped to 300 tonne steel ladles (again the chemical composition of the steel is the many special grades steel produced in largest in India). During tapping, ferro alloys, corrected as per customersâ&#x20AC;&#x2122; requirement. the CCS of Bokaro Steel Plant include DMR deoxidisers and ladle lime are added into Similarly, the temperature of liquid steel is for Navy, API for pipeline segments, MC the steel as per requirement. The total corrected for the casting of steels into slabs series for automobile chains, SAILCOR and blowing process is controlled by in the continuous casting machines. copper bearing steel for the Railways, and computerised metallurgical model to Bokaro Steel Plant has two continuous high strength LPG for high pressure achieve optimum end point. casting machines with two strands in each. cylinders.

CONTINUOUS CASTING At the end of the process, obtained steel is poured into the ladle and sent to the ladle furnace, to match the temperature with the casting temperature. Finally, the liquid steel is taken to the continuous casting shop (CCS) for further processing. The CCS of Bokaro Steel Plant is the fastest in the country and is equipped with advanced level-3 automation and control systems. The shop has a ladle furnace and a ladle rinsing station for secondary refining of steel. The shop achieved almost 150 per cent capacity utilisation in November 2010. Entering the CCS shop floor, was a delight, as large slabs of steel were seen sliding through. On the floor above, ladles were in operation for liquid steel hardening.

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SURGING AHEAD

This plant is under a stabilisation phase. Once complete, we will use coal dust injection to reduce coke use, which harms the atmosphere. In addition, coke is very costly and scarce and by using coal dust injection, we will be able to reduce our costs as well as dependence on coal. SUJAN PAL, GM â&#x20AC;&#x201C; BF Modernisation, Bokaro Steel Plant

Bokaro Steel Plant is working towards becoming a one-stop-shop for world-class flat steel in India. To make this a reality, it has laid out several modernisation plans for increasing the liquid steel production capacity, coupled with fresh rolling and coating facilities. The company believes in continuous evolution and thus has aggressive plans for implementing state-of-the-art equipment & technology in its various shop floors. These new facilities, the officials believe, will be capable of producing the most premium grades required by the most discerning customer segments. It exemplifies the imperatives of modernisation for any shop floor. A feature of the world-class shop floor!

fter an hour-long journey from Pune, as the destination inched closer, several manufacturing facilities started appearing on both sides of the road. The four-lane road was mostly vacant, barring a few goods-carrying trucks. “It is an industrial area. It is Ranjangaon!” the driver said, assuring us that our destination was just a few miles away. With evident joy, he added, “Ranjangaon is a harsh, droughtprone area, and lies in the rain shadow region of the Sahayadris. However, it has attracted a range of manufacturing industries in the recent years.” His statement struck high chords. It confused and intrigued me as well. I wondered why industries would choose a rough terrain like this to set up their facility. However, what intrigued me the most, was that how did the company – I was slated to visit – manage to create a world-class green facility in such a desert? I was eager to know, and understand, whether a green facility could synchronise with the corporate goals of profit, at such a place. All my questions were about to be answered, for I had finally arrived at the destination. It was my very first step into Cummins Generator

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Technologies and within minutes, my clichéd paradigms of a green manufacturing set-up’s outlook were completely broken. Cummins Generator Technologies is known for building India’s first green manufacturing facility having zero environmental impact. The company is a part of Cummins Inc, headquartered in Columbus, Indiana, US. It is internationally renowned for the quality and reliability of its products like STAMFORD AC generators, which has set the industry standard in its category. I made my way from the main gate into a glass building, along a pathway, laden with a beautiful arrangement of flower pots on either side. This, along with the trees all around, reflected the company’s green culture. In the midst of my little ‘green strides’, I missed out a huge tower that stood proud on the left side of the facility building. It was later that I was made to realise its presence, and subsequently, its role in the green paradise I was in.

CUMMINS’ GREEN MEMO My understanding of the Cummins green facility got clearer as I explored the plant. I realised that the achievement of being

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Photo By Joshua Navalkar

THE GREEN PIONEER

S’ DIAR

earn ce to a r e profits In th g ly cketin global sky-ro e m o c be some and , tent ecome compe nd to b e t s e i ent. n compa vironm n e e th ins Cumm wards o t e h e t itiv at to insens visit facility a s , e r i e and log Howev nature Techno t a r h t o s at fecting wed u Gener out af n, sho h o t i a g w n t Ranja coexis s can s e n i . s s bu argin ofits m the pr

ER REPORT

I EP PA

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India’s first green facility has not come easily and challenges were aplenty. Pradeep Bhargava, MD, Cummins Generator Technologies India, highlighted the first set of challenges. “Even when the concept of green was taking shape in our minds, we were sceptical about its possible conflicts with the stated corporate objectives. The problem was that we really did not have a benchmark to refer to, as we had never heard about a green factory before.” So, seeking further information, the company visited CII’s Sohrabji Green

SUPER SHOP FLOORS: CUMMINS GENERATOR TECHNOLOGIES, RANJANGAON

ua Navalkar Photo By Josh

As per the set parameters, a green factory efficiently optimises natural resources like light, wind, and water; minimises the use of non-renewable energy sources; utilises eco-friendly materials and prevents environmental contamination through waste management procedures. Bearing this definition in mind, the company’s architects visited the site, to confront the second challenge. Bhargava, explained, “The site had a 20 metre gradient on one side and 10 metre gradient on the other. It was a rocky plot but there was a natural, free-flowing water body right in the heart of the plot.” These obstacles were overcome by looking at nature’s problems as opportunities. All they needed was unravelling, Bhargava added. “The sloped gradient of the plant proved to be a boon, as we were pumping water along the flow of gravity. This free-flowing nullah also proved to be a useful resource for industrial use. A water collection tank was constructed at its entry point, to accumulate rain water. The over flow is guided through the ground surface. The bores intermittently drilled along the floor path facilitate percolation of water. As a result, the sub-soil of the surrounding areas gets enriched,” he said. Even at the excavation stage, a majority of the materials, which were dug out, were reused. Thus effectively utilising the resources available.“ As construction progressed, the team chose eco-friendly and recyclable materials at every juncture,” said Bhargava, with evident pride. Even the bricks used were made of fly ash and the cement was mostly slag cement. Walking down the facility makes one understand that almost every aspect of the factory was made using recyclable materials. For instance, glass wool, which is eco-friendly, has been used for cladding the roof. Similarly, low volatile organic compound (VOC) paints have been used for painting. Photo

By Jo shua

Nava

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s in operation The ﬁnal assembly proces

The co mpany ha I had missed s built a 30-m etr underg e round d arlier), whic e-long towe r( h uc the sho p ﬂoor ts, into the m channelises the same tow er whic is anufac the win the wo h turing rkplace 5 to 6 tonne facility d through per hou . It is Bernou the . T a r n h lli’s the of fres e circu A r a b ia h orem in lation in n conc air, com e which air gen pt and uses pletely cooli ng erates th e p r the kin in etic en ciples of ergy.

Business Centre in Hyderabad. And using the specifications received as a benchmark, the company defined the setup of its ‘green factory’. Sanjeev Kulkarni, Sr GM – Operations, Cummins Generator Technologies India, said, “From specification point, we choose Leadership in Energy & Environmental Design (LEED) as a certifying body and American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) for benchmarking the specifications. Thereafter, we looked at those specifications, studied them, and briefed our architects and consultants accordingly.”

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GREEN, EVERY SECOND After understanding the history behind the

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green facility, it was time to understand how the green agenda works on a day-to-day basis. To my fascination, while touring the manufacturing facility, Buddhiraju Rao, the plant’s General Manager, explained how sunlight is effectively used to save power. Pointing towards the roof of the shop floor, he said, “The building is designed in such a manner that it allows maximum sunlight to enter inside. Sunlight enters the work area from the ceilings and sides. Here, the right kind of glass is used, so that only light enters the premises, while the accompanying heat does not.” Interestingly, the company does not use artificial lights in the shop floor when there is sunlight. When asked how they manage in dark hours, Rao explained, “All the electric equipment which have been installed are selected so that they use least power. Even the equipment installed for dark hours are energy efficient.” I was impressed! Similarly, even the wind energy has been tapped to contribute to the company’s green practices. Explaining this, Rao said, “The factory is located at a very windy area. Rather than ignoring this, the company is using it to good effect.” The company has built a 30-metre-long tower (the same tower which I had missed earlier), which channelises the wind through the underground ducts, into the manufacturing facility. The circulation in the shop floor is 5 to 6 tonne per hour of fresh air, completely cooling the workplace. It is an Arabian concept and uses the principles of Bernoulli’s theorem in which air generates the kinetic energy.

MAINTAINING MANUFACTURING BALANCE By seeing and understanding the company’s initiatives, I was convinced that the company has effectively utilised nature’s giving. However, it was imperative to understand the manufacturing process and the waste utilisation methods as well, for they too were essentially linked to the company’s overall green programme. As we moved along the shop floor, Rao explained the manufacturing process and the best practices that the company had adopted at various stages. According to him, large volumes of lowvalue alternators, ranging from 5 kVA to 40 kVA are manufactured in the facility. “Essentially, we do winding and the assembly process in the facility. Most of the components and parts are brought from

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the vendors,” Rao said. The company has a vender base of more than 80 and operates two milk runs, whereby it acquires components based on customer’s orders. Coming back to the manufacturing process, at the first stage, the stator, which is the stationary part, is made. The process starts from getting an electrical lamination steel which is stacked one above the other, depending on the rating and the size required (5 kVA is smaller and 40 kVA is longer). Thereafter, it is welded and made into core packs. Furthermore, the copper wires are made into copper coils and then these two are sent out to dedicated local winding suppliers, who insert the windings inside and send it back to the facility. Once the stator is received, it is tested at the facility, before being used. At this stage, the stator triggers the manufacturing of rotor. Thus, the manufacturing of rotor begins. At the manufacturing section, post testing, the stator is sent for impregnation process via a conveyor. This is a trickle process. Traditionally, the stator would be dipped in resin and put in the oven for eight hours. However, in the Ranjangaon facility, copper coil (resistance treating), that is already available for heating, is used, and the resin is poured over the stator. In the old process, there was a tank containing resin, where the stator was dipped. So, after a point of time, resin would be taken out and disposed off. But now, only a small, five kilogram packet is used once, and everything is consumed, by the time the process ends. “Thus, in this way,” Rao explained, “the whole throughput time has reduced from eight hours to approximately 30-40 minutes, depending upon the size. Moreover, it also consumes less resin, which is a hazardous waste,” he added. Rao claimed that if anything is left, then that goes to the pollution control board (resistance treating), which manages it effectively. Thus, by the intelligent use of copper coil, not only has the throughput time come down, but also the generation of hazardous waste is prevented. This, the company feels, is indispensable to its green agenda. As the stator completes the impregnation process, it goes for the gelcoat process, which is essentially used to prevent rusting and for additional protection. Once this process is done, the conveyor pushes the stator to its meeting point with the rotor. Similarly, the rotor goes through the in-house manufacturing process. Here, the

entire processing happens at the facility itself: winding, inspection & electrical checks, and impregnation, in sequence. To match the customer’s demand, the company has deployed three impregnation machines. The processes are quite similar to stator, except that the tig welding is done at the rotor end. Here, argon gas is used instead of CO2. Then the exciter rotor is also placed depending upon the customer’s demand. Talking about the rotor manufacturing process, Rao says, “At certain stages, we have automatic machines; whereas in others, we depend on manual work.” Once the rotor also reaches the assembly point, the stator and rotor are paired and electrical tests are conducted. Few other tests are also conducted, and user interface items are added, before sending the finished product to the paint booth. The company believes in delivering quality products and maintains consistency in all their manufacturing facilities. “As we send the same products for export and domestic use, we have process and product convergence. If you pick up any of our product, which is made in India and any other, which is made in the UK or other countries, it is one and the same. So, we maintain the same standards everywhere. To ensure that it happens, we bring in critical process experts, who come and qualify the plant and the process, every six months,” said Rao, in a tone connoting his pride in the company’s quality adherence.

mind might insinuate that a green initiative adds to cost and does not provide tangible benefits. This has been conclusively proved wrong by us. The payback was immediate and we have recovered the cost in about 18-20 months. Now, we are consolidating on the initiatives and are adding up to our exchequer.” Nonetheless, to take forward the green legacy, the company underlines that there is a lot more which needs to be achieved. Bhargava points out, “As part of a larger green initiative, a time will come when we will start rating our vendors based upon their sensitivity towards building a green future. Moreover, whoever visits the factory – be it companies or high ranked officials – are told to build a factory which is much better (and greener) than this. Thus, we have to change the mindset of people towards a greener

Performance, delivery and price are the factors that differentiate us from other companies. It is on these accounts that we have managed to win the trust of our customers and become a market leader. PRADEEP BHARGAVA, MD, Cummins Generator Technologies India

THE CUMMINS’ LEGACY The manufacturing process emphasises on quality and waste management aspects, which are integral for making a factory, world class. Hazardous waste has been drastically reduced to the tune of 70 per cent because of the use of better processes. Even the non-hazardous industrial as well as canteen waste, are cultured through vermin composting. The compost is used as a fertiliser for trees. Moreover, the water, which is part of any waste, is treated and is utilised for watering the trees. Here too, the company adopts a strategy. Rao said, “We have done offset studies and measured the amount of CO2 emitted by the manufacturing facility and transport of employees. To neutralise the effect, we have planted almost 3,000 trees.” The commitment of Cummins team to environment protection, in my view, was commendable, but I wanted to know about the cost at which it comes. Not to my surprise, Bhargava said, “A cynical

future. Then, we will encourage our employees to contribute towards the environment even when they are at home.” In addition to the green initiatives, Cummins Generator Technology has equally emphasised at a new plan for implementation of lean initiatives, workplace safety, employee engagement and involvement. This was clearly evident through the operating results where throughput time has been improved by 50 per cent, productivity improvement by 25 per cent, quality PPM in three digits and has also recorded 450 accident free days. As I walked out of the facility, I carry forward Cummins’ message of making peoples’ lives better, by unleashing a cleaner, greener, and safer environment in terms of products & services, as well as facilities. My perceptions have changed! Green is gold!

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BUILDING THE NATION

WITH NERVES OF Y

S’ DIAR

the t r a t s k s, kic proces To n o i t ailed rialisa ers h indust d a e l ent reat quipm e our g d e cades tegrat an in five de r e v o eavy ity nce H g facil e n t i s r i x u t e ac ny, e into manuf compa m a e c h T , . hus core ration ago. T Corpo ds of e g e n n i r e e ring Engine to th ufactu n s a r e m t a e c ing to mplet which & forg as a co h g , n i s t e i s r a and c indust g from embly n s i s t a r a t , w s hining cts ho set-up y refle , mac t n i l o i i c t a a a f t at in he fabric lped it sit to t i e v h A s . a bute testing ted nature h contri d n a a e gr tion. cellenc its inte the na g ring ex n u i t d c l i a f u manu ards b ly tow e s n e imm I EP PA SANDE

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STEEL

hile browsing through some documents related to the ‘history of industrialisation in Independent India’, I realised that India’s first Prime Minister Pandit Jawaharlal Nehru and his aide, PC Mahalanobis, (Nehru’s key economist) were men of sharp instinct and had tremendous foresight. Of their many undisputed achievements, was the setting up of five year plans. While the first Five Year Plan had laid special emphasis on agriculture, the second Five Year Plan focussed on industry, more specifically, on heavy industries. The second Five Year Plan also laid emphasis on domestic production of industrial goods. Nehru believed that steel would play a pivotal role in building India, as it is a prerequisite for infrastructure development. Thus, enhancement of steel production capacity was given top-notch priority. However, the challenge was to build large equipment for this core industry, which would ‘build the nation’. Thus, Nehru incorporated Heavy Engineering Corporation (HEC) in 1958 to manufacture steel plant equipment and machineries that would in turn enhance the steel producing capacity of the country. HEC, one of the largest integrated engineering complexes in India, is located

SUPER SHOP FLOORS: HEC, RANCHI

In its initial years, HEC had restricted itself to manufacturing only steel equipment, but now, it also supplies capital equipment & machineries and renders project execution for all the core industries, including the strategic sectors. Equipment manufactured by HEC are utilised across the country for steel plants, mining, defence sector, railways, space & research operations and so on and so forth. To upgrade my understanding about this integrated plant, I visited its facility. HEC operates through four units – Foundry Forge Plant (FFP), Heavy Machine Building

n eo Se

MANUFACTURING OPERATIONS AT HEC

The Foundry Forge Plant (FFP) is considered to be the facility’s mother unit. It is believed to be the largest foundry and forging complex in India and one of the largest of its kind in Asia. The plant is spread across a sprawling 13,16,930 sq mt accommodating 76,000 tonne of installed machinery to effectively cope up with various operations. Explaining the various stages of manufacturing, TK Dey, Sr DGM – Materials MANUFACTURING STAGES Management, FFP, HEC, says, “FFP has four At the fettling shop floor, the cast products major shops. The first shop is melting and are subjected to chipping and fettling of sand foundry. It manufactures castings. The & other unwanted materials. “By using second is the forge shop; the third, the compressed air and vibrators, we chip off machine shop and the fourth one is the the unwanted portions of the cast product fettling shop, where castings are fettled.” to give it the final shape. These are While, melting and forging are production then considered the final shops, fettling & machine shops are called dispatch centers. The melting and foundry shop is an important area, where there are different furnaces for melting, steel production & further processing. Dey explained that the company has deployed multiple furnaces to meet the customers’ demand for variable products. “In the melting shop, we have furnaces of varying capacities. There are two 30 tonne and one 10 tonne electric arc furnaces. At the We also have one 5 tonne fe and fe ttling shop induction furnace. Furthermore, ﬂoor, t ttling . he cas t prod for the refining process, we ucts a re sub jected have a 60T vacuum arc to chip ping degassing (VAD) unit and one 90T vacuum degassing (VD) unit as well. These units are utilised for manufacturing quality products as per customer specifications,” he explains.

ahad

in Ranchi, Jharkhand. The company has, over the years, built over 550 thousand tonne of a wide range of equipment for the steel sector.

The composition of steel is determined and additives as well as steel scrap (prepared in the fully automated scrap processing unit) are added to the furnace, before the melting process begins. The composition and other factors are also checked because the quality of steel depends on it. Further refining is carried out in the VAD and VD units. In the VAD unit, the molten metal is poured into the furnace with a ladle for refining. Similarly, in the VD furnace, metal pouring is done under vacuum. Moulds of different sizes are placed and the vacuum is maintained below 1 Torr in order to get the desired quality. Dey further explained that the pouring of liquid metal into the VD furnace resembled the streaming of water droplets. “We generally use the VD unit to make strategic sector ingots. The vacuum ensures that there is a high level of compactness, which is essential to manufacture defectfree ingots,” he says. Once through with the melting and refining process, the molten steel is either cast and sent to the fettling shop or ingots are made and sent to the forging shop.

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Photo By Mahadeo Sen

THE MOTHER UNIT

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Plant (HMBP), Heavy Machine Tools Plant (HMTP) & Projects Division. “It is through these units that the complete manufacturing, starting from casting & forging, fabrication, machining, assembly and testing is carried out,” says S Subramaniam, Sr DGM – PR Division, HEC. The most striking aspect is that these complex manufacturing processes are undertaken at one location backed by a strong design, engineering & technology team. Despite being independent entities, the plants invariably support each other with their facilities. Moreover, having diversified manufacturing operations gives HEC the flexibility to manufacture customised products.

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SUPER SHOP FLOORS: HEC, RANCHI

Photo By Mahadeo Sen

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Various machines such as lathes, vertical and horizontal boring machines, grinding machines, etc. are used in the shop floor. “This plant manufactures heavy castings and forgings for various HEC-made equipment related to steel plant, defence, power, nuclear energy, etc. Some of the common A part products include forged for of hea vy mac ﬂoors hine b hot & cold rolling mills, eing m anufac spindles, shafts, steel tyres tured in one of the for the cement industry, shafts shop for the sugar industry, crank shaft for the railways, etc.,” says Dey.

Gear manufacturing in progress at one of the HMBP shops

products of this shop,” explains Dey. Meanwhile, for those at the forging unit, forging is done after the ingots attain the specified temperature by strictly following the heating cycle. The furnaces used here are mostly producer gas fired. For the producer gas generation, the company has one huge gas plant complex. Some of the equipment at the forging shop include one 6,000 tonne, 2,650 tonne, 1,650 tonne and 1,000 tonne Hydraulic Press (water & oil based). It also has 3T / 1.6T hammers. The products from the fettling shop are either sent directly to the customer or to the machine shop for machining. In the machine shop, rough machining is done. As a shop floor manager defines it, it is a place where ‘purely engineering skills are used’.

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GOING BIG AND HEAVY

A significant feature of any HEC shop floor is that while most of the equipment are bought from Russian and Czechoslovakian companies, some equipment are manufactured by the sister HMTP. According to company officials, the HMTP unit was set up in collaboration with Skodaexport of Czechoslovakia and is the most modern and sophisticated of its kind in the country. It designs and manufactures medium & heavy duty CNC and conventional machine tools for railways, defence, ordnance factories, HAL, space and other strategic sectors. This plant spans across an area of over 2,13,500 sq mt. The HMBP, on the other hand, has six shop floors for the manufacturing and assembly process. “There are three adjoining shops, which assist the main shops,” says RE Singh, GM – Operations, HMBP. The processing in the HMBP mainly starts in shops located in a huge building with high roofs (to accommodate the large manufactured machines), which are locally called 041 and 042. “In 041, we cut the materials to size and do edge preparation. The prepared materials are then fed to the adjoining 042 shop, which along with 041 is known as the structural fabrication shop,”

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says Singh. After fabricating and stress relieving, the machine parts are sent to 043 shop and subsequently, to 044 shop (if it involves crane or coke oven equipment) where further machining and assembling takes place. In case of other products, the parts go to shops such as 010 (heavy machine shop) and 020 (medium & light machine shop). “These shops have several advanced machines of different kind & sizes where machining is done as per requirement. They are then sent to the attached assembly section, where assembling and testing are done. Before dismantling, the jobs are properly match marked so that these products can be easily assembled at the site,” says Singh. A tour of the shop floor shows parts of the dragline, hopper, etc. at various stages of manufacturing and assembling. Singh showed me a huge 150 tonne ladle, which HEC is manufacturing for the Vizag steel plant. Upon prodding him with more curious questions, Singh said, “We made a foldingcum-vertical-repositioning platform (FCVRP) and one mobile launch pedestal for ISRO’s Chandrayaan-I launch.” The company has also supplied one 400T, EOT crane and one 10T tower crane fixed on top of the umbilical tower at SHAR, Sriharikota, for ISRO. HEC also undertakes execution of turnkey projects related to bulk material handling like coal handling, ore handling, ash handling, etc. and projects for a range of other industries, including steel and cement. It also executes coal washery projects, which are executed by the project division of the corporation.

THE BREAKTHROUGH The immaculate planning by India’s most respected Prime Minister Pandit Jawaharlal Nehru and various visionaries, who have worked with great zeal and dedication over the years, has helped HEC carve a special niche for itself in the manufacturing area. In its several decades of existence, it has not only fulfilled Nehru’s dream of catering to the steel sector, but has also expanded beyond limits to cater to strategic sectors such as space, nuclear, power, railways, etc. This was possible because of its integrated nature, which gives it a wider scope. Today, if Nehru and Mahalanobis were alive, HEC would have made them extremely proud. A true nation builder it is!

AT ALL

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RS’ DIARY

FRONTS

What’s the s eal o excellen f ce fo r automo global tive gia nts? It’s zeal to the unique deliver vehicle t h e m t o the co ost is super nsumer ior in co s, which m eternal passions, getting a fo rt & qu proved ality. Ha its mett chance to visit India’s leading v le in in SUV m g in India anufactu , Mahin automotive manufacturer ring dra & many s Mahindra & Mahindra’s (M&M) Mahindr uch cre a has dentials Its ma facility at Nashik was a real delight. to its nufactu n ame. ring fa To add on to the cheer, the Nashik demons cility a trates t Nash shop floor presented a chance to o p ik erationa in deliv l excell see two of my dream cars, being ering th ence e nation after SU ‘assembled’ – Scorpio and Xylo. ’s m Vs – Sco ost sou rpio & X ght This was also the opportunity to ylo. witness the manufacturing of a large SUDHIR product portfolio catering to a diverse MUDDA NA customer base, spanning rural and

ome thoughts shape your life, some change the way you think while some create the way to achieve the best dream you ever had. I grew up with the dream to have a car that stands as a statement for luxury and comfort that one experiences while driving. While driving an SUV remains one of my

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semi-urban customers, defence requirements and luxurious urban utility vehicles. M&M has gained the recognition of becoming one of the top 10 industrial houses in India. Its ability to deliver top quality products and services in the least possible time has made M&M a forerunner in the global race. The company has always believed in the principle of doing it right the first time and has left no stone unturned when it comes to carrying out advancements in their shop floor. With increasing knowledge and know-how of the latest advancements in technology & automation, and the zeal to compete and outperform its global counterparts, M&M follows world-

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class manufacturing standards & practices at its shop floor.

SHOP FLOOR MAGNIFICENCE As soon as I stepped into the shop floor of my dream SUV, its sheer opulence made me spell-bound with the kind of sophistication managed by the company. I was intrigued to know as to how the company has been able to ascertain such precision-packed manufacturing unit knowing that they need to deliver a product, which is quality-wise superior and provides the right feel and comfort to the customer. To make me better understand and visualise what goes into making a top-class vehicle, Yogesh Kanawade, Manager – Scorpio-TCF, M&M, shared with me the blueprint of the entire unit.

AUTOMATION ALL THE WAY Keeping the excitement intact, he explained me that the M&M facility has been divided into three sections. Assembly (trimming) of the body is performed in the very first section, while the assembly of chassis is done in the second sector followed by the final assembly where assembled parts from section 1 & 2 are put together to deliver the final product.

Photo By Joshua Navalkar

EXCELLING

SUPER SHOP FLOORS: MAHINDRA & MAHINDRA, NASHIK

Further complicating the process is the number of variants for each vehicle, which requires sequential feeding. For example, an ‘X’ part may be required for one variant, whereas ‘Y’ part may be required for another variant. As per schedule, the required parts are fed onto the line. This sequence depends on demands, availability of materials, accessories, engines, among other factors.

hua Navalkar

The entire facility is highly automated boosting of state-of-the-art equipment and processes to deliver best in class products. The facility has five synchronised ground conveyors – three for trimming the body, one each for the assembly of the chassis and for the final assembly line. Apart from these, there are a number of overhead conveyors,

THE ASSEMBLY PROCESS

Photo By Jos

In order to ensure precision at each point, the company has a state-of-the-art paint shop. The body of the vehicle is painted in a paint shop located around a kilometre away from the shop floor. The painted bodies are then taken to the facility via an automated overhead conveyor, which adjoins paint shop and the assembly shop. The painted bodies are then stored in the painted body storage (PBS) area. “There are two conveyors, one incoming and one outgoing, connecting the paint shop and the facility, which completes the loop,” avers Kanawade. From the area, according to the sequence determined by the IPMS, the body is fed onto the feeder line. Once the vehicle is taken from the PBS area, it travels via an overhead conveyor to the line where the assembly process is slated to begin. Before the body is brought down to the ground conveyor, basic works, such as realignments, are carried out so that the body gets transferred easily on the ground conveyor without any damage. After the body is transferred, the empty hanger on which it travelled goes back to the paint shop via the overhead conveyor.

on the glass

Photo By Joshua Navalkar

Robot used to apply sealant

Assembly taking place on the body while it moves along the conveyor.

which are used to carry the vehicle over the gangways from one line to the other. Since the assembly of models such as Scorpio & Xylo, along with the single cab and double cab vehicles is performed in the same line, schedulling becomes a critical factor. To maintain high accuracy, the sequencing is done using integrated production and manufacturing system (IPMS) software.

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TRIMMING ACTIVITIES Once the body gets transferred to the conveyors, workers cover the body so that the paint does not get spoiled while the assembly of the other parts is taking place. Also, each vehicle has a bill sheet attached to it, which contains list of parts required to

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be fitted onto the vehicle. While the body passes through the 3 assembly lines with a pace as per the IPMS, different components are fitted onto the body, and at the end of the third line,with the help of overhead conveyors, the body is transferred to the final line. While different parts are assembled in the body lines, simultaneously, with the help of IPMS, the corresponding parts are fed into the appropriate chassis. This is done with such time accuracy that the body along with the corresponding chassis reaches the final line at the same time. Similar to the bodies, the chassis also has a sheet attached, mentioning the parts required to be attached before proceeding towards the final line. As the conveyor moves, people assemble parts as per the sequence. The movement of the conveyor is programmed as per the time taken by a particular operation. Stating an example, Kanawade mentions, “The conveyor for the chassis has to cover 6 metre in 4 mins. In this case, work worth that much time is allotted to workers of that particular line to ensure accuracy and time management.” While taking a tour to the facility, I was intrigued to know what if at a particular stage, a component such as the nut runner stops functioning. Clearing my doubts, Kanawade replied that in case something is not functioning, the person writes that on the card attached to the chassis and then inform the senior operator. The operator will then check and fix the matter, and once done, will sign the card. In this way, every BWT ensures that he is delivering defectfree product to the next BWT. In the chassis area, there are 3 BWTs. Additionally, final checking is done on the chassis before it goes to the final line.

FINAL ASSEMBLY Once the body and the chassis are assembled with the help of IPMS, they are brought onto the final line using overhead conveyors. At the final line, the chassis is brought down onto a ground conveyor, and then the corresponding body is mounted and fixed on the chassis. All this is done in a much synchronised manner without any human intervention. Once the assembly gets completed, the vehicle moves onto the conveyor and operations such as brake oil filling, engine oil filling, gas filling, etc. are performed. The moment, these operations are over, a complete

SUPER SHOP FLOORS: MAHINDRA & MAHINDRA, NASHIK

biopsy is done, where all the functions of the car are checked. Once the final inspection of the vehicle is over, for the first time the engine is manually started, and the vehicle is made to run on wheels in the shop floor. The vehicle is now ready to be tested.

TESTING Then is the time for wheel alignment. A machine from Foray, USA is used to set the wheel geometry. Along with the wheel alignment, the headlight dimness is set. After these settings, the car goes in for a

roller testing in the roller test booth. Here the brakes, ABS, gear shifting, speed, etc, are tested. After the car comes out of the roller test booth, it is fine-tuned. For example, the doors are set, gaps are removed, etc. Once the fine tuning is done, the car undergoes the shower. Then the car is taken on a rough bumpy track to check if any squeaking, rattling noises occur. On successful completion of the testing operations, the vehicle is taken for the final inspection in the warranty reduction audit process (WRAP). The travel card is now verified, and the car is ready to be dispatched to retail showrooms.

Photo By Jos

hua Navalkar

SAFETY MEASURES IMPLEMENTED

in the

Photo

By Jos

hua Na

valkar

chassis body over the assembled Mounting of the assembled ﬁnal line

Being a global leader in automotive, the company places utmost importance to safety and human health. In fact, it takes all the necessary precautions to provide its employees with a safe working environment. To make the employees aware of the safety precautions, various day-today illustrations as well as charts have been put across the walls of the shop floor. In fact, at the entrance of the shop floor, the company has displayed a mannequin wearing safety gear including safety shoes, gloves, nonmetallic belt and bump cap (like a helmet and has a PVC covering), which needs to be worn at locations where there is a danger of head injury.

Model c

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sed for h

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OPTIMUM QUALITY CONTROL

In order to ensure that the quality is maintained at every stage and an errorfree product is passed on to the next stage, the five assembly lines are divided into 12 basic working teams (BWTs). Each BWT makes sure that a fault that occurs is determined and rectified at the stage at which it occurs and not at the final stage. This averts the

possibility of delaying the delivery of products to the customer. However, before the product is dispatched, it undergoes final testing. In the ready for inspection (RFI) audit, the status of the vehicle is inspected. The central quality personnel selects a 10 per cent sample size from the dispatch yard and conducts an overall audit for that batch. Discrepancies, if any, are resolved and the vehicles are then released for dispatch.

SETTING BENCHMARKS IN TRAINING The company places paramount importance on continuous skill enhancement of its employees. For the same, model training vehicles are deployed in the shop floor. Here, different bodies and chassis are kept besides their appropriate line, and whenever a new operator comes in, he is imparted with hands-on training on the model vehicles before working on the line. The moment they are well-versed with the operational intricacies, employees are given tasks to manage with utmost precision. Justifying the same, Kanawade explains, “When a worker is recruited, he first has to undergo the training at the Dexterity School. The basic dexterity skill involves learning of basic operations such as nut-bolt fixing. Then the employee is taken to the shop floor for imparting training on the model. Here, he will be trained for the process he is to be deployed.” Standard operating sheets (SOS) are being referred for training. These sheets contain information about the parts involved and how it is to be held and handled. It is prepared keeping in mind the minutest of details such as whether a particular part is to be held upright, with five fingers, etc.

ZOOMING AHEAD WITH PROSPECTS Getting into the intricacies of manufacturing a car of consumers’ choice has been a thrilling and inspiring journey for me, notably so because I am passionate about driving SUVs. While the entire journey to the shop floor was an enriching experience, it also boosted my confidence about the upbeat Indian economy and the contribution of world leaders like Mahindra & Mahindra in such an inspirational saga. Maintaining utmost precision in each & every operation, the company has become a hallmark in the automotive category.

SUPER SHOP FLOORS: TITAN INDUSTRIES, HOSUR

A I D L ’ DIARY

REPORTERS

ost of us identify with the tag the ‘World of Titan’. But what exactly makes this brand so special? By creating a wafer-thin quartz movement, Titan has carved a niche for itself in the wrist watches category. Keeping innovation as its core, Titan has launched new collections from time to time. Its sustained R&D initiatives, design expertise and manufacturing capability have helped Titan, over the last few years, gain an enviable market position in the watches category. But what is the enabling factor for Titan’s upper hand in the market? HG Raghunath, Sr VP – Integrated Supply Chain & Manufacturing, Titan Industries, says, “The core of our strategy is innovation and new ideas. Today, watches are not just a time keeping device but a fashion accessory. During the festive season, customers are keen for new products. Hence, it is necessary to retain the novelty factor. To support our innovation, we have updated our manufacturing capability and developed an integrated supply chain management system.”

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OR N O TIO VA

BUILDING THE MANUFACTURING CAPABILITY The innovative, trend-setting watches are manufactured at Titan’s manufacturing unit at Hosur, an industrial suburb of Tamil Nadu. Set up in 1985, the unit had initially planned an annual capacity of 2 million watches. But today, by adopting state-of-the-art manufacturing facilities, the unit produces components for over 11 million quartz analog wrist watches. The Titan Industries’ movement manufacturing set-up was established in technical collaboration with France Ebauches, a leading quartz analog movement manufacturer in France. In 1989, it obtained the watch case manufacturing technology from Japan’s Citizen Watch Company and in the mid-90s, it obtained the technology for complicated watch cases and solid link bracelets manufacture from a Swiss company. The state-of-the-art physical vapour coating facilities were established with the help of technology from German and Swiss coating expert companies. Titan Industries is one of the very few manufacturers in the world that manufactures

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watch leading ’s ia d In Titan r, e r tu c fa u man ufactured s, has man ie tr s u d In illion a 100 m n a th e r mo tomer as a cus h d n a till date mbrella n. The u watches o li il m 0 nology over 8 tz tech r base of a u q offering brought ng, has brand, li ty s l a n dian rnatio in the In t with inte if h s paradigm on at its about a g innovati in p e e K g its arket. to offerin d watch m te it m m e n is co resent th core, Tita that rep s e h tc a rs w . consume agination f their im o s s a p m co SHIVANI

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watch movements, watch cases and watch assembly all under one roof. It is the 5th largest integrated watch manufacturer and retailer in the world. From the initial offering of 150 models in 1987, today the supply chain and manufacturing set-up has the capability to handle more than 3,000 watch variants every year. Its in-house watch case plant has a unique capability to produce a wide range of products. Building on its manufacturing strength, Titan Watches overtook market leader HMT in 1995 by selling 3.2 million watches against the latter’s three million. Over the years, the Hosur facility went on to become one of the largest integrated watch manufacturing units in the world, employing around 3,500 people. The facilities in Hosur include a computer aided design (CAD) & prototyping unit and a comprehensive tool room manufacturing

SUPER SHOP FLOORS: TITAN INDUSTRIES, HOSUR

precision tools & die sets. The design department, comprising of 10 designers, collaborates with the manufacturing group to convert aesthetic ideas into engineering realities. Titan has always believed that cost-cutting was a means to achieve competitiveness and improve profitability. In order to improve productivity, quality and safety, Titan automated select manual and semi-automatic operations in movement and case manufacturing. It has implemented world-class manufacturing (WCM) practices that help keep costs under control. As part of the WCM initiatives, Titan implemented practices such as just-intime manufacturing, total productive maintenance and total quality control.

operations are imported either from Japan, France or Switzerland. This unit mostly runs on automated operations and houses some of the state-of-the-art machines. Raghunath says, “Automation is necessary to get the desired levels of accuracy and reduce cycle Step motor manufactu time. We have designed ring our own PLC system, which is cost-effective and help us reduce time. Our PLC systems are connected online, which help us keep a THE SHOP FLOOR TOUR check on the operations The manufacturing unit at Titan consists of through remote maintenance. We four major units – the movement have developed a productivity kit manufacturing plant, case manufacturing that helps us calculate the best route plant, watch assembly and the design & and optimises time for a process. development plant. The facility has This system also helps us maintain a implemented a good blend of automation dirt and dust free environment on the as well as manual skills. shop floor.” At the movement manufacturing plant, The shop floor manufactures nearly in the dial the operations carried out include auto 70 lakh movement parts (pinions, main e motor unit Setting up th turning, gear hobbing, step motor plates, coils, etc.) in a year. Since the manufacturing, main plate manufacturing, parts are small and there is a need to printing and treatment operations. This unit create micro gears, automation is the is mostly used to manufacture cylindrical ideal way to achieve the desired accuracy parts, minute & delicate parts and parts that and precision. This is necessary for the need to be dirt-free, accurate and precise. watch to work for years together. Most of their machines for measures are in place for micro-precision Raghunath informs, “After each process, important we do a quality check. The part is magnified and accuracy that are needed to show over 50 to 100 times for us to spot any error-free time and run continuously. The defect. In-process control art of watchmaking depends on the art of ‘tool making’ and this needs to be of the SHOP FL OOR INN highest standards. It is our job to ensure O V In move ATION: S ment m that the watch does not stop for years U B EETCHA anufact lead tim uring, s after it is purchased. In fact, those from e comp e tting lev onents, require er Cal 7 the watch industry who have visited our produc d for th 0 0 0 is one ed at t is comp taken is o h shop floor have said that we have f e t h o movem e critica nent pr more. T ent pre l and hig oductio his resu created the Swiss watch making s volume s n h s is lt hop. T s in crea high an per shif he skill ting a bo d also t experience in our facility in India.” t to low s While t t e h t t le e er levels neck op ‘throug he busin . eration, hput tim ess requ high skil limiting e’ irement the pro l requir STEP MOTOR is t duction hrice th ement fo resulted e curre r tool m MANUFACTURING & in the a n t p a n r oductio ufacture bove st precisio n a a t r SUB-ASSEMBLY UNITS e n a . t d e, comp In the jo n progr day to d essive d lex and urney o ay tool of ‘desig The step motor manufacturing and subie set to f innova mainten n and p e t n io a h n n a c r n , e o c T c e have it e t a assembly units are located within the The ab s h n s e in h p a n r s o o designe ductivit vation’, ove inn d a high y levels. which b ovation movement manufacturing plant. The employ T r r o h e u is sulted in ght succ is a com ee motiv e manufactured step motor parts are b n s in a s in t a io t e times tion o Titan’s utilisatio n since increase it has eli busines n of crit processed through automated set-up in the minated s need. ical reso in prod tiresom uctivity, urces, h step motor sub-assembly unit. Raghunath e manu igher le e n h a nced al opera vel of sa says, “Training is essential for assembling a tion, op fety, etc timised . watch. However, manufacturing can be an automated process. For instance, the dial is

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SUPER SHOP FLOORS: TITAN INDUSTRIES, HOSUR

and rotate it without damaging or denting the part. According to Raghunath, “On-the-job training is the next important

shop dials on the Production of

ﬂoor

Main plate

manufactu

powered by a step motor, which has a delicate coil to power it. This coil is costly and is coated with a special coating. It needs to be properly placed and checked for winding.”

ring line

equipped to work with all the new materials. At Titan, part of the manufacturing capability also depends on the strength of the supply chain management. For this, the company has implemented the enterprise resource planning software (ERP) and advanced planning & optimiser (APO) from SAP for the watch business. There are IT-enabled knowledge portals that link watch assembly units with the main manufacturing unit in Hosur. These initiatives enable them to facilitate the dissemination of information effectively and to provide connectivity across various business functions. This has helped in improving the overall reliability, productivity and reducing the cost in the long run.

TIME MACHINE FOR THE FUTURE

With a focus on launching new products, designs and models, the unit keeps updating the shop floor. The growing focus on fineness and precision has led the company PRESS SHOP, EBAUCHE & to focus on automation in the near future. step in developing a person’s capabilities. PLATING UNITS Raghunath informs, “We plan to produce After the initial training, it is important that The press shop, which has die sets, is used 13 million watches in this unit by using the person knows how to disassemble and for manufacturing flat parts of the watch. automation as a key strategy to achieve this. then, reassemble the dial as the minute Micro precision operations are carried out On the shop floor, we have also created a parts have to be placed in a particular order in the press shop to manufacture the parts. cellular layout to suit manufacturing for the watch to run.” The shop floor is The Ebauche unit, on the other hand, operations. This will help us in is the main plate manufacturing area. building more capability for The case press shop, polishing unit working with new materials such and plating shops are part of case as silver, lighter version of carbon SHOP FLOOR INNOVATION: AKSHAYA manufacturing unit. Here, the watch fibre, aircraft materials, titanium, cases are produced, polished, plated etc. Our manufacturing is In movement manufacturing, setting lever Cal 7000 is one and assembled as a final product. constantly evolving to suit new of the critical and high lead time components, produced at At the plating unit, both wet and ideas and we firmly believe in the movement press shop. The skill set required for this ion plating are carried out depending improving the process over time. component production is high and also the ‘throughput on the requirement of the watch using There are plans to even expand time’ taken is more. This results in creating a bottleneck state-of-the-art plating equipment. the capacity of the unit.” operation, limiting the production volume per shift to The final process is the movement Already, in some of the Asian lower levels. and watch assembly unit. The unit has markets, Titan is amongst the While the business requirement is thrice the current to be free from dust & dirt and hence, top three brands. In the next production rate, complex and high skill requirement for visitors are barred from entering the two years, the Group envisions tool manufacture and day to day tool maintenance have unit. Workers employed at this unit further opportunities from resulted in the above state. In the journey of innovation, wear white coats, caps and socks while international markets. One of Titan has designed a high-precision progressive die set to assembling the watch. Interestingly, the strategies is to double the enhance the productivity levels. This is a combination of this assembly, unlike the other units, production capacity and produce ‘design and process innovation’, which brought success to has more women staff than men. nearly 25 million products from Titan’s business need. The above innovation resulted in the unit. With a high level of nine times increase in productivity, enhanced employee THE TRAINING PROCESS expertise and knowledge about motivation since it has eliminated tiresome manual For the shop floor and assembly units, consumer preference, Titan is operation, optimised utilisation of critical resources, workers are made to undergo a one well on its way to becoming the higher level of safety, etc. month training programme where second largest watchmaker in they are taught how to hold small parts the world.

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PERFECTION PERSONIFIED have always been intrigued by the kind of perfection achieved by the global firms in suiting to its local customers’ requirements while maintaining global standards in their shop floors. A visit to a global giant’s India facility helped me understand the core competencies of glocal firms, which are unique in delivering top quality products to its customers around the world with the same kind of precision followed across its facilities. This global firm is none other than the leading engineering company, ABB. Built on the corporate notion of ‘Good leaders are characterised by competence, ambition and integrity’, ABB has been reigning high in fulfilling its customers’ needs par excellence. During my visit to the company’s facility in Nashik, I was fascinated to see the kind of sophistication maintained in the plant. To understand why the company is ranked high in terms of its world class facilities, and

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gain better insights into the practices followed by the company, I visited the Ring Main Unit (RMU) shop floor, where sulphur hexafluoride (SF6) gas filled RMU tanks are produced. Those RMUs are used for secondary distribution of power. Before I began with the expedition, Yogesh Kshirsagar, Operations Manager – RMU and Kishor C Gharte, Sr Engineer – RMU Operations, Medium Voltage Technology Power Product Division, ABB, proudly mentioned the thought of Joe Hogan, CEO, ABB, which states, “There are many dimensions in which ABB can compete, but none of these are meaningful for our customers without a foundation of quality. The responsibility for quality is something that must be owned by every person, every business and every location that ABB calls home.” He further states, “ABB India’s RMU unit is a world-class shop and continuous improvements are bound to happen as we have adopted operational excellence as prime area of focus in our practices. All the processes right from the beginning to the

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DIARY

motto h the t i w p t in gu e bes h Keepin t g liverin ices to of de & ser v s t c n u d ro as bee class p ABB h , s r e dian tom the In its cus g n i sform nging of tran cape. Bri m l e h s tion nd at the utoma g la a n i r & u t l ac the ca manuf nologi rket, a h c m e t est local Indian in lat tr uly g n r the a o f f o s y n tio stimon solutio perfec is a te th the y i n a W p . m Nashik com cal) fir ity at o l l i c a + f l B class (globa the AB e of best in , d e i f i leagu person in the l l a t s stand loors. shop f NA UDDA M R I H SUD

ERS’ REPORT

end are completely automated & safe. All the work is done using conveyors. Also, the shop floor is a replica of the one in Norway, which is the parent factory. It has the same layout, same work procedures, same tools, and the same machinery as the Norway plant. That is why we brand our products as ‘Made by ABB’ and not by any ABB location.” His words more than intrigued me to see the entire facility which is completely automated.

SHOP FLOOR ADVENTURES One of the main reasons why this facility can be considered world-class is that its RMU includes high quality, automation & technology, and world-class practices, all under one roof. In order to ensure that its products do not compromise on quality, the components are first inspected in the transit store. They are cleared for usage only after passing the supplier quality assurance (SQA) checks. “We also audit the processes at the vendor’s/supplier’s place. We have an SQA engineer and an incoming

SUPER SHOP FLOORS: ABB, NASHIK

quality engineer, who accompany the buyer and supply chain person to ensure that the quality of the components purchased is good. If the supplier’s stock quality is up to the mark, then the finished product quality will be good,” explains Kshirsagar. To improve the quality of their products at the shop floor, records of first pass yield (FPY), ie. the products passed in the first instance without any rework, are also maintained. “We have 97-98 per cent FPY results. However, we are constantly trying to get to the 100 per cent mark,” says Gharte. Initially, FPY was only done at the gas filling and final stages of operations. However, this had a drawback. At final stage, if a problem pertaining to the first welding stage is encountered, then the tank needs to be reworked completely. This speaks of the criticality of FPY testing at each stage. Justifying the same, Kshirsagar explains, “To avoid this, we have implemented stage-wise FPY, which is basically a way of early warning so that the product at the final stage is a fault-free product and results into customer satisfaction. Today, all the 20 work stations undergo FPY.” Also, to ensure error-free products and to deliver those products on time to customers, the shop floor follows the theory of constraints (TOC). “Not many companies in India have adopted this theory. The theory of constraints is an advanced production and ongoing improvements theory. The TOC helps to identify and exploit the bottlenecks, to reduce the disturbances and thereby improves the flow on production line. We are in the initial stages of implementation,” avers Kshirsagar.

section also involves manual stud welding by using templates used for mounting the equipment on the tank. However, in the next six months, we plan to have the stud welding done by a robot.”

THE CLEANSING PROCESS In order to prevent carbon deposition on the surface of the plates during stud and robot welding, vegetable oil is applied on the surface of the plates before it is sent for welding. “If you do not apply oil, carbon will permanently stick to the surface and will make it rough. If components are then mounted onto the tank, it will form gaps and cause leakages,” Kshirsagar says. To clean the deposited carbon and oil, the tank plates, after welding, are placed into a washing machine, where they are thoroughly washed using hot water and biodegradable environment-friendly detergent. The washing machine has rotating jet sprays that pump in water to clean the tank plates. This cycle lasts for around 17-18 minutes. After washing, the tank plates are mounted onto the conveyor line, where the required components are assembled into it. Subsequently, an automatic operation testing machine checks the tank plates for endurance.

NECESSARY PRECAUTIONS Assembling tanks requires accuracy and precision as critical and delicate components, such as the vacuum interrupter (VI), are involved. While assembling the tank, employees are made to use personal protective equipment (PPE) such as hand gloves as even a minor aspect like a fingerprint or a particle of dust on the VI can

MANUFACTURING PROCESS The first process is welding of the front and side plates of the tank. The operation is fully mechanised and is carried out by a welding robot. Talking about the process in depth, Kshirsagar adds, “ABB-made robots help us attain the highest quality and productivity standards. This way, we can confidently assure leak-proof performance of the RMU tanks, which we always say as ‘sealed for life time’. He further adds, “We put the component on the fixture. The robot automatically selects the programme and executes welding in a defined manner,” adds Gharte. From occupational health & safety (OHS) point of view, fume extraction system is installed at welding station. This

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hamper the product performance. The VI is covered by a bubble wrap to prevent dust from settling on it. The tanks are assembled in a compact shop floor. The ducts at the shop floor’s roof have a positive air-cooled pressure system, which ensures that a certain temperature and humidity level is maintained in the shop floor.

GAS FILLING & TESTING Once the internal components are assembled, all the functions of the product in line with standards are tested by quality. The back plate is tack welded and offered to robot for complete sealing of tank via overhead conveyor. Once sealed, the tanks are moved to the gas filling and gas leakage testing machine, where the gas filling tool is fitted onto the tanks. Fully automated leakage testing and gas filling station acts as the benchmark for all the prior activities. The checking and filling process takes about 9-21 minutes, depending on the size of the tank. However, the tanks are made to go through a leakage test before SF6 is filled into it at the required pressure. The tanks are then taken into a high voltage and partial discharger (HV & PD) cell, where they are tested at a voltage double its capacity (approximately 50 kV). Since the procedure involves the usage of such high voltage, the shop floor takes all the necessary precaution to avert any fatal accident on the shop floor. A hooter installed at the shop floor rings as soon as the procedure begins. There are electrical & mechanical safety interlocks provided, unless the interlocks are operated (happens only after door is closed), the supply to HV transformer doesn’t start. Emergency push switches are also provided. This avoids any chances of accident on the shop floor. Once the tanks have passed the tests, it goes for late customisation ie. rest of the lkar

shua Nava

Photo by Jo

Ground conv eyor

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used for th e assembly of the tank Photo by

Joshua N

avalkar

back plate Tack welding of

SUPER SHOP FLOORS: ABB, NASHIK

fabricated components are mounted on the tank and customisation like wiring, final assembly, settings and finishing is done as per the requirement of customer. After this, final testing is carried out by authorised QA person and RMUs are dispatched to the customer.

THE KANBAN TECHNIQUE Once the components are quality tested and brought into the store, they are integrated into the Kanban process. “Kanban is a Japanese technique of lean manufacturing. While most call it an inventory control tool, I would refer to it as a technique used to maintain the flow of a

It is said that in any world-class assembly shop and visual factory, a tool should be traceable within 60 seconds. In order to ensure the same, we pay high attention to ergonomics and systems. This is not all. Our continued thrust on workers’ safety is also a top priority for us because we believe in zero tolerance for health and safety issues. YOGESH KSHIRSAGAR, Operations Manager – RMU, PPMV, ABB India

production line to avoid disturbances. Kanban is one such world-class practice that we follow,” avers Kshirsagar. So how does the Kanban process work? Kshirsagar explains, “Based on the consumption/demand pattern, we refer to a past consumption record and analyse the pattern to see how it fits our future requirements. This helps us arrive at a daily consumption level of a component.” We work on Visual Kanban and we are now moving towards Kanban with visual indications because nothing can give better control and results than visual inspection. Ascertaining the component consumption level helps company decide on the Kanban bin sizes. ABB follows the three bin Kanban, which makes it easy for the supplier to understand how many components he has to supply. “The deliveries are staggered as

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Robot performing

tion tank welding opera ua Navalkar

Photo by Josh

per the shop’s requirements. Only if the material is consumed in the shop, then will the vendor supply it. In this way, the cash flow will stagger, inventory will be reduced and the store space will be saved,” say Kshirsagar and Gharte.

SAFETY ABB attaches prime importance to human health and safety. The company believes that every employee is an asset of ABB and cannot be recovered, if lost. It has marked gangways to ensure the safety of employees and those visiting the shop floor. Education on safety is the prime action for freshers. In addition, it has also installed sirens in the unit to warn people in case there is a mishap. “We have assembly points in case of such emergencies. Each cell has leaders who will guide during these emergencies and most importantly zero tolerance to safety and compliance,” explains Kshirsagar. In order to prevent any fatal accident from occurring on the shop floor, photoelectric sensors are placed adjacent to machines. The moment an object passes over the crossover, the machine automatically stops.

OPERATIONAL EXCELLENCE The company believes and emphasises on the involvement of team at all the levels and bottom up approach is the key for operational excellence (OpEX) at ABB. As part of One Simple ABB Group directives, OpEX is used to drive small and continual improvements. The basic four pillars of operational excellence as briefed by Gharte and Kshirsagar are: 5S: Pioneer of OpEX – 5S means ‘place for everything and everything at its place. This principle calls for a neat, clean and shining factory, in simple terms, a tour ready factory.

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Minor touchups being don

e before dispatch Photo by Joshua

Navalkar

Kaizen – Change for Good: Small changes that result into healthy and safe change in the process, lead to cost savings by value engineering and productivity improvement. Visual Factory: Uses visual indicators, signals, controls, andons and guarantees to direct and support activities on the shop floor. The result is a self-explaining and selfregulating workplace where critical information is shared rapidly, accurately and without speaking a word. Any visitor who visits shop floor for the first time should get the glimpse of total activities at the shop within five minutes. 4Q Tool: ABB’s Global problem solving technique: To solve big problems, this tool is used. It is a systematic problem solving technique. ABB believes in delivering defect-free product to the customer. To achieve this, 5Why analysis, 4Q and Gemba approach are used to solve small and big problems during individual operations.

INSTILLING DYNAMISM While customer satisfaction has been the motto of the company, it has made sure that the product is fault-free before leaving the shop floor. With the adoption of best in class management practices and bringing in latest technological and automation solutions in the Indian market, ABB has been instilling fresh vigour into the vibrant dynamics of manufacturing. A mere visit to such a worldclass facility has led me to realise that the manufacturing facilities in India have all the mettle to become the super shop floors for the world. What it requires is the zeal and a firm determination to reach to that pinnacle and my visit to ABB testifies the same!

Photo By Neha Mithbawkar

DEVELOPING

’ DIARY

REPORTERS

gines Oil En r a k s Kirlo ssed its ys harne a lw a s to a h potential e v ti a v s inno ing need the evolv e n cater to lan d esight, p r fo s It . s ent tomer managem n of its cus a le f o n , adoptio ves to approach nt initiati ta s n o c any s and the comp e principle d a m e v itself ha cturing upgrade s manufa u o n e ig d r in in a pionee India. ngines in e l e s ie d of EY A MAHOR SUMEDH

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INDIGENOUS

FRONTIERS n a reporter’s life, some cities become an integral part of their work. One such city is Pune, full of promises, calling me again… this time for a manufacturing facility visit to Kirloskar Oil Engines (KOEL) at Khadki. Before heading for the assignment, preconceived notions kept intriguing me, creating the picture of a conventional shop floor – full of grease, hot fumes, smoke, dust, big exhaust fans, dirty clothes and most of all, a dull, black background full of stains. With this in mind, I started the short bus trip with my photographer to the city where I spent most of my childhood.

As we entered the company’s main gate, the first thing I noticed were long yellow stripes drawn on either side of the road. To me, it represented the parking space, but the interpretation was changed by the company officials. The areas were demarcated as walking space for employees and visitors. Every person who enters the Kirloskar gate follows the rules of the company and the same is true for the people working there. This speaks of the stringent rules and regulations followed by KOEL in ensuring a safe working environment for its employees and society at large. While this is just the start, KOEL, with its innovative capabilities, has been able to achieve many such landmarks.

GREEN INITIATIVES To achieve its low-carbon emission target, major initiatives were taken right at the planning stage. Elaborating on these initiatives, a representative of utilities department, KOEL, says, “During the planning stage, we undertook green initiatives in DV plant by installing transparent sheets for the roofing by replacing old asbestos sheets with galvanium sheets. The well-lit shop floor that you are seeing here is the result of the planning done during the initial stages. This has resulted in reduction of use of electrical lamps during the day

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Neha M ith

While I expected to enter a dim-lit shop floor, I was surprised to see a well-lit, speckless, absolutely tidy shop floor with great ventilation. To give a backgrounder, the plant was inaugurated on April 15, 2009. In this over one-and-a-half-year span, KOEL has developed DV engines for power generation in the range of 320-625 kVA, having the best specific fuel consumption in its class. The plant has achieved this remarkable feat through the use of basic manufacturing principles such as lean manufacturing, visual workplace, just-in-time, assembled to order, first-in first-out and JIDOKA. The concept of the DV plant emerged when the top management at Kirloskars decided to enter the high range in medium engine class. The state-of-the-art plant was built in a record 100 days during which expertise from production, research and engineering, plant engineering, manufacturing engineering, utilities and quality assurance were utilised for the successful completion of the project within the deadline. The DV series diesel engines manufactured in this plant are designed on the principle of high pressure central injection technology. Four valves with centrally located fuel injection ensure an even spread of fuel in the combustion chamber. There is a special design of lube oil circulating system with centrifugal filters, which provides an extended time of lube oil to 500 hours. These engines are known for their durability & reliability and comply with future emission norms (EU stage II level). The DV engines can also run on 100 per cent bio-diesel making them more environment friendly as the carbon emission is 40 per cent lower than diesel.

time, thereby reducing energy consumption. The second initiative was taken in the form of installation of turbo vents for better ventilation in the shop floor. This enables natural ventilation and that too, at reduced energy consumption.” Furthering its aim to reduce its impact on the environment, KOEL has many initiatives in the The indige nous to ensure ev ly developed fuel in pipeline. Reflecting jection pum en spread p is locate of fuel in th d e combust on these initiatives, ion chambe centrally in the engi ne r. the representative points out, “We are planning to fit light pipes in the assembly shop. This is a new technology in the era of illumination. It Seiketsu (standardisation), and will help us utilise natural light in the Shitsuke (discipline) – innovation, creativity assembly shops. Apart from this, KOEL is and people involvement”. At present, the planning to initiate carbon footprinting in the company has achieved the first two ‘S’ and next 2-3 months. We are ready to take all is in the process of implementing the next the necessary measures to reduce our three. Adding further, the production team carbon emissions after the results of this member cites an example of a very report are out.” innovative idea of ‘lunch box’ that emerged Utilising the best technologies in the through this initiative. This box is used in the world and the conscious efforts taken by assembly stage and contains all the fasteners the management towards innovation and (nut, bolt, washers, etc.) required to continuous improvements has helped complete one engine. With the use of this KOEL to achieve major landmarks in engine box, all the fasteners remain in one single manufacturing during its short journey. The place and one can gauge how much work management’s efforts towards making an needs to be done in the final assembly. This eco-friendly plant are also commendable. innovation was recently developed and Here is a glimpse of how all this was implemented by the DV assembly team. achieved by KOEL through the use of best management practices and technical SHOP FLOOR SPECIFICITIES know-how… KOEL today boasts of being the only MANAGEMENT PRINCIPLES company in India, which indigenously IN PLACE designs and manufactures engines in the The absolutely clean and well-maintained range of 490-760 HP. shop floor at KEOL is the result of sustained To understand how the company initiatives taken by shop floor employees managed to achieve this feat in such a short towards the implementation of Kaizen span of time, one needs to have a look at principles. Elaborating on the measures to the sprawling shop floor, which exemplifies improve the functioning of the shop floor, a sheer precision and planning implemented member of the production team elaborates, at every stage of the production process. “We have an annual operating plan in place The layout of manufacturing cells within wherein we have to achieve the plant is U-shaped, and is divided into 45 improvements per month. These machine shop, assembly, testing, painting & improvements are based on the 5S principle packaging. All the 7C components – – Seiri (proper arrangement and clearing crankcase, crankshaft, cambox, cylinder up), Seiton (orderliness), Seiso (clean up), head, main camshaft, fuel injection pump

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DIGVIJAY PLANT: A CHANGED PERSPECTIVE

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SUPER SHOP FLOORS: KIRLOSKAR OIL ENGINES, PUNE

Photo By Neha Mithbawkar

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camshaft and connecting rod – are manufactured in-house with 100 per cent precision. The manufacturing facility includes CNC machines, special purpose machines (SPMs), leak testing machines, ultrasonic cleaning machines, vibratory deburring machines, washing machines, etc. Kirloskar is the only company in India that machines complete cambox in the said kVA range. The 7C components are manufactured in the following sequence: Cambox Line: The cambox, ection insp nal ﬁ and ing test r leak Cylinder head stacked afte manufactured in the cambox line, is used as the outer casing of the fuel pump. First, averaging operation is done for the cambox followed by drilling. The cambox is then washed and the finishing is done before it is sent for deburring. The last step in this line is leakage testing. Crankcase Line: Crankcase is the heart of the engine and all the machining on the crankcase is done in-house by the company. Cylinder Head: Firstly, the The co nn component goes through the cranks ecting rod, haft, s horizontal machining centre for top tacked which is us ed to after th jo e serra and bottom finishing. Subsequently, tion gr in the pisto inding n and proces the valve guides are pressed into the s. moulds by the use of liquid nitrogen. Then washing is done followed by leak testing on micro leak detector. Finally, inspection and checking of the component takes place. Connecting Rod Line: This component is used to join the piston and the crankshaft. In this line, the connecting rod line is bored in the CNC machine and then cut in the horizontal band saw machine. The equipment then goes through the serration grinding machine followed by bolt hole drilling. Final Assembly: The Over 700 components are assembled in the ﬁnal stage of the assembly line boasts of latest diesel engine manufacturing. The assembly of one engine takes around eight hours for technologies with up-to-date completion. four assembly fixtures, two test beds with computer facilities and a paint pool. All 7C finished components are brought into the assembly as per the sequence provided by the manufacturing

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engineering team. All other components are carried to the assembly on a service trolley, which is filled at stores as per the bill of material. The hardware components such as nuts and bolts are provided through the lunch box system. The final assembly of an engine consists of around 700 components and the whole process takes around eight hours for completion. For testing the freshly assembled engine (green engine) a high technology work facility is created inside the plant to check the engine’s performance parameters. The test bed is fully automated and remote monitoring of the test parameters is possible. Painting and Packaging: After being tested, the engine goes through the masking and demasking process. Once this stage is complete, the engine is cleaned for the painting process. The engine is then sent to the packing section where small components like clapping, tightening, radiator and mounting are fitted into it. All the components that are required for the final installation are then filled in the accessory box and the final engine is prepared for dispatch.

AMBITIOUS APPROACH Right from the word go, KOEL has been achieving one landmark after the other – be it adherence to management principles, constant innovation or eco-friendly initiatives. The company’s ability to indigenously design and manufacture a complete new range of engine has been duly supported by its robust shop floor through precision manufacturing and innovative approach. As we moved out of the facility, I realised that a planned and focussed approach right at the beginning has backed this company’s ambitious march towards the leaders’ position in the country. Adding to this, Sumit Garg, Area Manager, Marketing – Power Generation, says, “For us, it is a matter of pride that our DV Series engines are the only indigenously designed and manufactured engines in India in the range of 490-760 HP. DV series Gensets powered the opening and closing ceremonies during the XIX Commonwealth Games in Delhi. This accomplishment has not only showcased our commitment and capabilities in the higher kVA bracket but has also proven that Kirloskar Green Genset is the dominant player and is the most preferred brand among customers.”

TECHNOLOGY SOLUTIONS TO IMBIBE: PRELUDE

PRELUDE ue to intense competition worldwide, the manufacturing and utility industry has witnessed rapid technological advancements. This can be loosely grouped under two categories: machinery and system. The domain of machinery deployed at a plantâ&#x20AC;&#x2122;s shop floor is perhaps one area around which engineers have conducted the most intensive R&D over time. Traced back to time, this has been the case since the onset of the 18th century when the industrial revolution ushered a new era in manufacturing. Since then, different types of machinery, for various production facilities, have been invented, modified, and re-invented continuously. On the other hand, the role of system shot into prominence during the late 20th century, when the production and selling of goods became very competitive across the global market. Deployment of highly efficient machinery was not enough, and the plant environment needed extra support, especially on the coordination front. The core plant operation in manufacturing and utility sectors (essentially machinery-intensive ones) need various types of plant system to execute, control and coordinate the production, quality and maintenance activities. It is somewhat independent of logistics, procurement, sales, accounting, and human resource management related activities carried out by organisations. These two types of systems are integrated into a seamless system representing the plant environment, which is used by the plant management to plan, coordinate and execute manufacturing operations. The machinery and systems installed in the factories are expected to manufacture different models and grades of various product lines. This has to be done, ensuring timely delivery, even with quick change in demand pattern; at lowest cost with minimum waste; in the most safe and environment-friendly manner and of first-time-right quality that meets customer expectation. In other words, the manufacturing operations have to be truly lean to be globally competitive. To achieve this lean status, machinery and system technologies need to be rapidly upgraded to deliver high degree of accuracy and perfection. While working in tandem, these new technologies in system and machinery need to ensure that the following objectives are achieved: Lean manufacturing to reduce cost of production and waste, as much as possible Agility and responsiveness of each of the link in the plant operation Standardised quality of products and processes, under regulatory environment Enhancing asset utilisation, as much as required Enhancing customer satisfaction by timely fulfilment of orders. Scanning through the technology landscape of global manufacturing,

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we have attempted to identify the key technology trends that will shape the future of manufacturing. These are: Manufacturing execution systems RFID & Barcoding Product lifecycle management Product design simulators ERP on the web Cloud computing Wireless industrial network Industrial automation Advance process control Robotics and artificial intelligence Flexible manufacturing systems & machine on wheels High speed machining and low waste/high efficient machines Predictive maintenance & equipment with embedded diagnostics. While all the trends are critical, every organisation should minutely study their competitive landscape, ecosystem, gaps in manufacturing infrastructure, and then adopt only those technology trends, which are suitable for their plant operation. To grow the business operation profitably, companies should look for cost-effective, safe and environment-friendly technology solutions. The following key points should be given due consideration before taking decision of technology adoption: Suitable technology trends should be identified carefully with a clear understanding of technical and functional compatibility among all chosen technology-based solutions. Implementation of the technology-based solutions should be planned systematically, along with the objectives of deployment. Change management should be an integral part of the overall plan of action. Clear identification and tracking of the benefits, that are to be realised, should be done during the deployment of technologybased solutions. The prevailing business environment across the globe is at a crossroad. The forces of globalisation, economic downturn, and depleting reserve of fossil fuels are reshaping the entire industrial environment. To remain profitable and follow a growth trajectory, organisations should aim at achieving competitive edge, by deployment of the suitable technology-based solutions mentioned ahead. And that should be part of the overall manufacturing operation strategy. Siddhartha Sen, Managing Consultant; Dheeraj Ahuja, Senior Consultant; Apurva Sharma, Senior Consultant; under the guidance of Ravind Mithe, Executive Director, PricewaterhouseCoopers

A manufacturing execution system keeps track of all manufacturing information in real-time, receiving up-to-the-minute data from robots, machine monitors and employees, thereby improving productivity and reducing cycle-time. manufacturing execution system (MES) is a control system for managing and monitoring work-inprocess on a factory floor. As per Manufacturing Enterprise Solution Association (MESA), manufacturing execution systems (MES) deliver information that enables the optimisation of production activities, from order launch to finished goods. Using current and accurate data, MES guides, initiates, responds and reports on-plant activities as they occur. The resulting rapid response to changing conditions, coupled with a focus on reducing non valueadded activities, drives effective plant operations and processes. MES provides mission-critical information about production activities across the enterprise and supply chain via bi-directional communications. MES plays a vital role in bridging the system gap that exists between the enterprise resource planning (ERP) system deployed for manufacturing business operation and the plant machinery control system. By integrating an MES with ERP software, factory managers can be proactive about ensuring the delivery of quality products in a timely and cost-effective manner. As per requirement, MES should be deployed in the following areas of plant and manufacturing operation: Production Management Operation Besides production resource accounting, supervision and control of production processes is critical to remain competitive in business. MES takes care of this

crucial task. Maintenance Management Operation Besides fixed asset and machinery resource accounting, performance management of a plant and its machineries assume significance, since, at any point of time, larger amount of capital is blocked within the fixed assets. Asset performance management software, a subgroup of MES, may be deployed after necessary integration with the automation systems. Quality Management Operation Apart from quality parameter tracking,

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MES plays a vital role in bridging the system gap that exists between the enterprise resource planning (ERP) system deployed for manufacturing business operation and the plant machinery control system. By integrating an MES with ERP software, factory managers can be proactive about ensuring the delivery of quality products in a timely and cost-effective manner.

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MES facilitates an organisation to carry out the entire quality testing and regulatory process management. Inventory Management Operations Like material procurement and accounting, tracking of materials across the production sub-processes is equally

important. MES does a wonderful job here by not only tracking at various stages, but also keeping all types of records related to the intra-plant material movement. This is crucial, particularly for any manufacturing plant. There are three ways in which MES is offered by vendors: Standalone MES As part of automation systems Through acquisition of small standalone packages and integration of the same in their own enterprise solutions (ERP) package. Some of the key practices that should be followed for complete MES solution are: Selection of appropriate technology architecture, which supports MES module deployment and integrated with the automation systems Selection of complex widecommunication protocol, which are cost-effective and flexible Deployment of MES solutions that conforms to lean manufacturing and six sigma concepts, ensuring flexible, and responsive operations Design of KPIs that captures the trend, ensuring that the plant operation is following a path of continuous improvement Design of solution that provides production & quality tracking, and keeps record that conform to regulatory norms like FDA Deployment of solution that ensures real-time machinery health monitoring Deployment of modules that ensure energy optimisation and environment protection.

TECHNOLOGY SOLUTIONS TO IMBIBE

Tracking products’ journey right from the raw materials stage to packaging has always been a cause of concern for designing a lean manufacturing process; thanks to coding systems like automatic identification & data capture (AIDC), the process has been become much more simpler and accurate. utomatic identification and data capture (AIDC) refers to the methods of automatically identifying objects, collecting data about them, and entering that data directly into computer systems without human involvement. Technologies typically considered as part of AIDC include barcodes, radiofrequency identification (RFID), biometrics, magnetic stripes, optical character recognition (OCR), smart cards and voice recognition.

codes’. Barcodes can be read by optical scanners, called barcode readers or scanned from an image with the help of some special software. Almost every item purchased from a grocery store, department store, and mass merchandiser has a UPC barcode on it. Barcodes are widely used in shop floor control applications software using which employees can scan work orders and enter the time spent on a job. When a manufacturer packs a box with any given item, a unique identifying number (UID)

At the heart of an AIDC, is a transducer that converts the actual image or a sound into a digital file. This file is then stored into the computer’s memory and is used by it to compare other files in a database, in order to verify, identity or to provide authorisation. AIDC allows extraction of information from paper documents for further processing it in enterprise solutions like ERP, CRM or SCM. These documents can be structured, semistructured and unstructured as per need. Barcode: A barcode is an optical machinereadable representation of data. Originally, barcodes represented data in the widths (lines) and the spacing of parallel lines and may be referred to as linear or ‘onedimensional barcodes’. They also come in patterns of dots, squares, hexagons and other geometric patterns within images. These are termed ‘two dimensional matrix

can be assigned to the box. A relational database can be created to relate the UID to relevant information about the box such as order number, items packed, quantity packed, final destination, etc. The information can be transmitted through a communication system such as electronic data interchange (EDI). This enables the retailer to get information about a shipment before it arrives. When the shipment gets to the final destination, the UID gets scanned, so that the store knows the order source, what items are inside the box and the amount to be paid. Radiofrequency identification (RFID): RFID is a relatively new AIDC technology, which uses electromagnetic waves to exchange data between a terminal and an electronic tag attached to an object. It is used for identification and tracking. Some

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tags can be read even when you are several metre away – beyond the reader’s line of sight. Some of the sectors where RFID has been implemented include:

WIP TRACKING RFID tags can be used in harsh industrial conditions, even when exposed to chemicals, extreme pressure and/or temperature. It can be read even when they are covered, stacked or buried. And, because RFID tags are rewritable, they can be repeatedly time-stamped and updated at

each step of the production process with a job code for the operation performed, operator ID, configuration, quality control grades, and other records. Check-in and check-out applications can be adapted for tool crib management.

INVENTORY SYSTEMS An advanced automatic identification technology like RFID has significant value for inventory systems. The technology provides an accurate knowledge of the current inventory. In an academic study performed at Walmart, RFID reduced outof-stocks by 30 per cent, for products selling between 0.1 and 15 units a day. Other benefits of using RFID include reduction of labour costs, simplification of business processes, and reduction of inventory inaccuracies.

TECHNOLOGY SOLUTIONS TO IMBIBE

PLM integrates people, data, processes & business systems and provides a product-information-backbone for companies and their extended enterprise. roduct lifecycle management (PLM) is the process of managing the entire lifecycle of a product; from its conception, through design and manufacture, to service and disposal. PLM integrates people, data, processes and business systems and provides a productinformation-backbone for companies and their extended enterprise. It is one of the cornerstones of a company’s IT structure; others being customer relationship management (CRM), supply chain management (SCM) and enterprise resource planning (ERP). Within PLM, there are five primary areas: Systems engineering Product & portfolio management Product design Manufacturing process management Product data management. A major part of PLM is the management of product definition data. This includes managing engineering changes and release of components, product version management, document management, planning project resources and timescale. This role is covered by numerous collaborative product development tools, which run throughout the whole product lifecycle and across organisations. This requires many technology tools in the areas of data sharing and data translation.

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The basic information about the product bills of materials needs to be managed as the first step. At the engineering department’s level, this falls under product data management (PDM) software domain while at the corporate level, it comes under the purview of enterprise data management (EDM) software. These systems are linked to other enterprise solutions like SCM, CRM and ERP. PLM should be seen as a collection of software and working methods, integrated to address either single stage of the lifecycle, connect different tasks, or manage all stages of the whole process. The main software used for design and development is computer aided design (CAD), which involves engineering disciplines like mechanical, electrical, electronic, structural, and software (embedded). This can be 2D drawing or 3D solid and/or surface modelling. Such software includes technology such as hybrid modelling, reverse engineering, etc. Along with the actual creation of geometry, analysis of components and product assemblies takes place. Simulation, validation and optimisation tasks are carried out using computer aided engineering (CAE) software, which is either integrated in the CAD package or is used standalone. These are used to perform tasks like stress analysis, finite element analysis (FEA), kinematics, computational fluid dynamics (CFD), etc.

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Computer aided quality (CAQ) is used for tasks such as dimensional tolerance analysis (DTA). After the components are designed, the manufacturing process is defined. This includes tool design, creation of CNC machining instructions for the product’s parts as well as tools to manufacture those parts, using integrated or separate computer aided manufacturing (CAM) software. This will also involve analysis tools for process simulation for operations such as casting, moulding, and die press forming. Once the manufacturing method has been identified, the manufacturing operation management software comes into play.

CASE IN POINT Indian automobile major, Maruti Udyog, wanted to ensure customer delight by reducing the development time and offering cars at lower prices. The adoption of PLM technology enabled them achieve the same. With this, design-to-launch time has been reduced by 25 per cent and 50 per cent reduction in assembly/build issues has been achieved. PLM has now become a critical part of the company’s manufacturing strategy. The PLM system helped the organisation achieve impressive results in terms of reduction in manual labour activities, reducing cost of quality and achieving faster time-to-market.

TECHNOLOGY SOLUTIONS TO IMBIBE

While adding or changing machines in the shop floor, rewiring of hardwired networks to accommodate retooling and production line shifts can be quite cumbersome. This issue can be overcome using the new wireless networking architectures that are capable of bypassing such interferences. n a modern factory, the plant’s shop floor is proliferated with industrial automation sensors, control applications, databases, and wired networks that join thousands of input and output points. So, when the need arises for rewiring of hardwired networks – to accommodate retooling and production line shifts – large scale networking proves cumbersome. This concern can be solved with the new wireless networking architectures, capable of bypassing such interferences. Wireless networks consist of low-cost, batterypowered sensor modules and embedded networking intelligence. The modules house microprocessors, radio frequency chips and sensors, depending on their job. Each module in a wireless network acts as a sender, receiver and router, which are virtually immune to interference. If transmission from a certain node hits a roadblock on one data path, the embedded routing capabilities relay the information to an alternate node. Hardwired network costs substantially per-metre-length to install, and more to modify when plant configurations change. The most obvious cost savings for wireless networks are delivered during installation. Further savings are realised during operations because of reduced maintenance costs and greater flexibility. The wireless networks easily accommodate change, be it an expansion or redesign of shop floor at comparably low costs. Reconfiguration of a wireless network takes just few hours as

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opposed to the weeks that conventional networks require. Advanced features available in industrial wireless products include orthogonal frequency division multiplexing (OFDM), a technique that distributes data over multiple carriers assigned to individual frequencies, in order to reduce distortion and interference. Also, using wireless multicast packet filtering technique, unnecessary rebroadcasting of data is controlled (that can, otherwise, crowd the network). Hence, by deploying wireless networks for unifying all of the relevant data in the facility, manufacturing companies can protect their investment in conventional networking. The wireless networks easily accommodate change be it an expansion or redesign of shop ﬂoor at comparably low costs. And then, every time a plant undergoes change and/or expansion, the wired network can be replaced by its wireless counterpart. Wireless network almost becomes a necessity when control systems need to be installed at remote locations (like the tank farm of a refinery), which can be mobile as well (like an oil drilling rig). The sensors and instrumentation can be several hundred metre away from the control room area. With wireless, the only thing necessary is to install it and turn it on. Complete installation takes less than a few man-hours. Wireless standards such as IEEE 802.11 and ISA 100 will help make wireless

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technology implementation easy compliance of such standards vendors. WirelessHART protocol even easier to design and deploy network in industrial premises.

due to by the made it wireless

CASE IN POINT At a Canada based coating, polymers & adhesives manufacturer, long distance wireless application resulted in substantial savings. Implementation of remote monitoring with security cameras was done using a wireless system. The monitored site is more than one km away from the office, and substantial amount was saved on fibre optic cables’ procurement and installation. At one of the plants of a tier 1 Spain based automotive component supplier with 56 production centres spread over 17 countries, wireless network was designed and deployed. Wireless Ethernet link was used to connect a programmable automation controller to I/O for a press-stamping application. With wireless, engineers did not need to sort through schematic diagrams, installation & termination details and the layout drawings for the cable tray, junction boxes and interface panels. Absence of cabling resulted in saving of material costs and installation service cost. Three years after opting for the wireless system, only one bolster cable needed replacement, whereas in the past, one replacement every other month was a necessity. Wireless networking helped the company to reduce downtime associated with cable failure and replacement, translating to savings of up to about $0.2 million per year.

TECHNOLOGY SOLUTIONS TO IMBIBE

With the help of product design simulator, engineeers can create an environment, wherein, it is possible to manufacture and test products virtually, without human intervention. o derive maximum benefits from the product lifecycle management (PLM) tool, it is imperative to have an equally sophisticated digital manufacturing tool that integrates PLM with various shop floor applications and equipment. Product design simulator and virtual factory modeller are such tools, which allow engineers to create a plant environment where manufacturing processes are virtually performed by the resources. The software handles process planning, product cost and efficiency analysis, along with resource planning for ergonomics, robotics, PLC, production line balancing, as well as electronic work instructions. The virtual environment thus encompasses the following: Assembly lines Machine centres Tooling Workforce Facility layout Ergonomics. Users can model, simulate, validate and optimise on a product (manufacturing)process- resource data model at the macro and micro levels. Information can be defined and managed between various engineering applications in an object-oriented fashion. The engineering and process data can be shared with shop floor personnel, PLCs and

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ERP systems. An important requirement for such a virtual environment is its interactivity, which has to be supported in different ways like: Ability of the user to interact intuitively with the virtual factory and obtain information by selecting a work station Ability of the user to interactively modify the simulation run by changing routings, processing times, workforce allocations, etc. in the virtual environment Employee training on simulation software to make them aware of the effect of certain actions. The ideal end-point is achieved when simulation run can drive all of the product definition and production throughout the entire supply chain. With the adoption of such a technique, manufacturing companies can achieve a faster product time-to-market and save on costs, by proactively modifying factory layout and managing resources. Modelling and simulation has radically transformed industries like aerospace, defence, automotive, consumer goods, which is now moving into FMCG as well. Digital manufacturing allows components and part manufacturers to optimise their production, in line with their customers – the original equipment manufacturers (OEM). Optimum usage of the software’s capability helps reduce the plant’s

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commissioning costs by validating robotics and automation programmes virtually. Using digital manufacturing, process plants can be operated with optimal layout, and throughput & production debottlenecking can be done easily. By generating machine inspection programmes for co-ordinate measuring machines and numerical control machine tools, the software supports Six Sigma and lean initiatives as well as facilitates the sharing of quality data across the organisation. By providing real-time access to product lifecycle data, digital manufacturing allowed companies like Boeing, GM and Bayer to get maximum effectiveness in managing production processes.

CASE IN POINT Digital manufacturing has helped Boeing transform itself into one of most efficient and respected organisation today. Boeing has been using virtual manufacturing, digital pre-assembly, and discrete event simulation tools to significantly lower production cost and cycle time, on a number of existing, as well as new products/programmes. Utilising this technology, the company has been enriching its ability to identify potential production problems and design deficiencies – during the product development stage – prior to final design commitment.

TECHNOLOGY SOLUTIONS TO IMBIBE

Integration is an exceptionally significant ingredient of enterprise resource planning (ERP) systems. The integration between business processes helps develop communication and information distribution, leading to remarkable increase in productivity, speed and performance. nterprise resource planning (ERP) system is an integrated computer-based application used to manage internal and external resources. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organisation and manage the connections with outside stakeholders. Built on a centralised database and utilising a common computing platform, ERP systems consolidate all business operations into a

business. Hence, the entire ERP solution is being deployed over the web to ensure the following: Collaboration among the employees of the organisation who are located in different offices, plants and warehouses, which are geographically far off. The employees just need a web browser to access the solution modules and finish transactions. Thus, it becomes easy, fast and effective to plan for the material procurement required for multiple models of a product to be manufactured

Some of the key parameters for implementation of ERP on web solution are: Operational process mapping and selection of appropriate modules that will automate the transactions pertaining to the employees, suppliers and customers, located at different places Functional design and module configuration Selection of robust, scalable and reliable hardware systems where web application server and relational database

uniform and enterprise-wide system environment. ERP system software encompasses the following business functions as the basic building block of the enterprise solutions: Accounting Human resources Demand management and sales SCM & purchasing Materials planning Shop floor management. The traditional deployment of an ERP package, spreading over the above mentioned areas, has an obvious limitation. The software deployed on the server and accessed through the office LAN cannot address the real-time collaboration among suppliers-organisation-customers; a trend that is rapidly growing in the globalised

at a number of plants spread over different regions. Collaboration between suppliers and employees of the organisation who may be located in different locations around the world. The information on purchase order, material dispatch, invoicing and payments etc. can be processed and modified over the web, without going into lengthy and inefficient procedures. Collaboration between the customers and the employees of the organisation who can be located in different locations around the world. The information on sales order, goods dispatch, invoicing, and receipts etc can be processed and modified by the head office, branch offices and/or warehouses, over the web, without getting into lengthy procedures.

are installed The technical architecture should be fully secured with Demilitarised Zone (DMZ) and firewalls. This restricts unauthorised access. Deployment of ERP solution that provides real-time, online transaction processing on the web-based modules Change management of users so that the user acceptance of the solution and ownership of the solution can be facilitated. Some of the key benefits include building common business vision across all locations of the company, availability of transactional data in a central database that provides realtime business intelligence and easy & convenient access of the centralised ERP system by remote users.

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TECHNOLOGY SOLUTIONS TO IMBIBE

With a goal to share resources among its customers, partners and vendors, thereby saving time and space, cloud computing is the next step to networking. loud computing is defined as Internet-based computing, whereby shared hardware, software, and information are provided to computers and other devices on demand, as with the electricity grid. It represents that concept of a services consumption and delivery platform, which is scalable on changing demand pattern. The goal of cloud computing is to share resources among the cloud service consumers, cloud partners, and cloud vendors, across the cloud value chain. The resources can be shared using an infrastructure cloud (eg. hardware), a software cloud (eg. software as a service (SaaS)) and/or an application cloud (eg. application as a service). Cloud architecture typically involves multiple cloud components communicating with each other over application programming interfaces (usually web services), resembling the UNIX philosophy of having multiple programmes, each doing one thing well and working together over universal interfaces. The two significant components of cloud architecture are known as the front end and the back end. The front end is the part seen by the clientside users. The back end of the cloud architecture is the ‘cloud’ itself, comprising various computers, servers and data storage devices.

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Metering of cloud computing resource usage is done for each of the clients and application on hourly, daily, weekly and monthly basis. Cloud computing users can avoid any capital expenditure on procurement of hardware, software & services and pay the service provider only for the services used. Consumption is usually billed for utilities like electricity and telephone on usage or on time period, with little upfront cost. Users can terminate the agreement any time (provided the agreement has such a clause), thereby avoiding risks and uncertainties. The operating expenses, however, will not be less as compared to owning an IT system. Every user organisation will need to do a detailed cost-benefit analysis, including subjective analysis of the capability of the organisation’s data centre and the level of adoption of cloud computing concepts at the organisational level. The cloud hosts may charge for instances (often with extra charges for high-capacity CPU), data transfer in and out, storage (in GB/month), requests for I/O, PUT, and GET, IP addresses etc. It was by mid-2008 that Gartner saw an opportunity for cloud computing ‘to shape the relationship among consumers of IT services, those who use IT services and those who sell them’. Three possibilities exist:

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Cloud-based software services: SaaS delivers software applications as a service over the Internet. Network based access to commercially available software is typically closer to a one-to-many model (single instance, multi-tenant architecture) than to a one-to-one model. Cloud-based platform services: The platform-as-a-service delivers a computing platform and/or solution stack as a service, facilitating deployment of applications (by the customer) without the cost and complexity of buying and managing the underlying hardware and software platforms. Cloud-based infrastructure services: The infrastructure-as-a-service delivers computer infrastructure platform virtualisation as a service. Instead of purchasing servers, data centre space or network equipment, clients buy those resources as a fully outsourced service. Suppliers typically bill such services, amount of which will typically reflect the level of activity. One of the prime reasons behind the widespread adoption of cloud computing is the easily accessible remote computing sites provided by the ubiquitous Internet. It takes the form of web-based applications that users can access and use through a web browser, not distinguishable from a programme installed locally on their own computer or office LAN.

TECHNOLOGY SOLUTIONS TO IMBIBE

As complex as it may sound, industrial automation & control systems (IACS) have proved to be a boon for companies in ensuring operational safety & security. ndustrial automation and control systems (IACS) include control systems used in manufacturing and processing plants & facilities, building environmental control systems, geographically dispersed operations such as utilities (ie. electricity, gas and water), petroleum production & distribution facilities. It is used in industries and applications, such as transportation networks that use automated or remotely controlled or monitored assets.

processes that involve few hundreds to few thousands of motion control and process control parameters) - Distributed control system (DCS) (mainly for continuous processes that involve tens of thousands of process control parameters) Level 2 Automation control system (leaning towards Level 3 MES software) like: - Supervisory control and data acquisition (SCADA) (mainly for small or localised operation control and co-ordination)

prevent illegal or unwanted penetration, intentional or unintentional interference, with the proper and intended operation, or inappropriate access to confidential information in IACS. Vendors in the marketplace offer IACS systems in two types: As standalone IACS system software and hardware; offered by vendors With the plant machinery and IACS system software and hardware; offered by vendors. Some of the key steps for proper implementation of IACS solution are:

As per ISA 95 (international standard for developing an automated interface between enterprise and control systems), IACS system hardware and software should be deployed in conformity with the manufacturing plant (discrete and process plants have different requirement). The following systems - that are deployed on all types of plant sub-systems, like rotating machinery, static equipment, machine centres, furnaces, conveyors and piping, etc. - form part of IACS: Level 1 automation control systems like I/O, sensors & Instruments Level 2 automation control system (leaning towards Level 1 hardware) like: - Programmable logic controllers (PLC), programmable automation controller (PAC), remote terminal unit (RTU) (mainly for discrete and batch

- Human machine interface (HMI), batch execution systems (primarily for batch production execution). The key points that provide substantial operational benefits, but need close attention of the implementation term are: Design & deployment of associated information systems such as dedicated equipment monitors, graphical interfaces, process historians and plant information management systems Design & deployment of process control systems, including basic process control system, safety-instrumented system functions (physically separate or integrated), and advanced or multivariable process control Secured system (computers, networks, operating systems, applications and other programmable components) that

Operational process engineering and selection of appropriate technology components & architecture, which supports IACS deployment, integrated with MES Functional design, graphic design and logic design as per plant machinery operation controls and process optimisations Selection of complex widecommunication-protocol (including wireless), which are cost-effective and flexible Deployment of IACS solutions that conforms to lean manufacturing and Six Sigma concepts to ensure flexible and responsive operations Deployment of modules that ensure energy optimisation and environment protection.

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TECHNOLOGY SOLUTIONS TO IMBIBE

To achieve process stability, throughput & yield optimisation, superior product quality and energy optimisation, a company must deploy advance process control (APC) tools like model-based control and real-time optimisation, above the automation system. dvance process control (APC) extends the automation solution into the realms of process optimisation through very complex logics built around process parameters. The process industries face some key challenges, which are beyond the domain of operational excellence concepts viz, lean manufacturing, Six Sigma, TPM, etc. Neither of these can be addressed by deploying technology solutions like MES. To achieve process stability, throughput & yield optimisation, superior product quality, energy optimisation, green house gas (GHG) emission reduction, and increased operating flexibility in process industries like refinery, petrochemicals, chemicals, cement, paper, pharmaceuticals etc, a company must deploy APC tools like model-based control and real-time optimisation, above the automation system. There are three main factors for the optimisation of the production process: Correct information on process parameter: The most suitable parameters need to be measured with the required accuracy and monitored for process assessment. The characteristic curves within the range of the optimum operating point are often extremely non-linear. So inaccurate measurement or large tolerance limits

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for measuring parameters will be detrimental for APC. Correct configuration of process: The most suitable devices & procedures should be used for process control. Only the right band of controlled variable or optimisation criteria needs to be chosen and configured, so as to have maximum impact on the result of optimisation. Optimisation of process management: By evaluating all the operational plants and processing information together; as an ‘individual section’ and as a whole ‘plant complex’, will lead to formulation of strategy for achieving the goal of cost reduction, profit increase and GHG reduction. The APC uses very complex algorithms. Various types of APC solutions can be designed and deployed including: Controller-based optimisation Dynamic and non-linear optimisation Steady-state non-linear optimisation. Apart from the field instrumentation, distributed control system (DCS) deployed for APC consists of functionally and/or geographically distributed digital controllers, capable of executing from one to 256 (or more) regulatory control loops in one control box. The controllers have extensive computational capabilities and in addition to proportional, integral and derivative control;

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they can generally perform logic and sequential control as well. Central to the DCS model is the inclusion of control function blocks, the ‘blocks’ of code that performed tasks, essential to process control.

GUIDING LIGHT Power generation: Boiler start-up process is energy-intensive and should meet the requirements pertaining to time, energy use and thermal stress simultaneously. Efficient optimisation software can find out the start-up profile so that savings of up to 20 per cent can be made and emissions can be reduced significantly. Thermal power plants account for approximately 65 per cent of the world’s power supply. The efficiency of such type of power plant is very low because of high energy loss in the thermal energy plant. APC optimisation software enhances energy efficiency & reduces GHG emissions using complex logics & controlling the process set-points. Oil & gas and petrochemicals: Hydrocarbon processing plants have largescale, multivariable applications with various controlled, manipulated and disturbance variables to be optimised. Dynamic and steady-state optimisations can be applied selectively in refining and naphtha cracking plants that provide maximum return-oninvestment for APC implementation.

TECHNOLOGY SOLUTIONS TO IMBIBE

With the unprecedentedly increasing processing power of microprocessor and artificial intelligence, robots have proved their potential as flexible automated operation tools. obotic solutions have revolutionised the Indian manufacturing industry, with robots outperforming humans in jobs that require precision, speed, endurance and reliability. Robots safely perform dangerous jobs. Robotics applications in traditional manufacturing include material handling (pick & place), assembling, painting, welding, packaging, palletising, product inspection and testing. Right robot for right application can decrease the RoI and time considerably while a wrong selection of robot can hamper the productivity of a process. In this regard, usage of simulation tools aids in selection. While selecting the right robotic solution, one needs to keep in mind the consistency of deliverability, be it quality or time. At present, mostly lead-acid batteries are used as source of power, but potential power sources could be: Pneumatic (compressed gases) Hydraulics (compressed liquids) Organic garbage (through anaerobic digestion) Radioactive source (such as with the proposed Ford car of the â&#x20AC;&#x2DC;50s) and the still untested energy sources like nuclear fusion reactors etc. Actuators are the parts, which convert stored energy into movement. By far, the most popular actuators are electric motors that spin a wheel, and linear actuators that control industrial robots in manufacturing plants. Alternative types of

assist types have the operator commanding medium-to-high-level tasks, and the robot automatically achieves the task. An autonomous robot can work for extended periods of time without human interaction. With the unprecedentedly increasing processing power of microprocessor and artificial intelligence, robots have proved their potential as flexible automated operation tools. The convergence of robotics technology, with a wide variety of technologies like machine vision, force sensing, speech recognition and advanced mechanics, has resulted in new levels of functionality for jobs that were, earlier, not considered practical for robots. Robots are being deployed in large numbers in sectors like automotive, electrical & electronics, rubber & plastics, food & beverage, metal and machinery. With hundreds of thousands of robots installed worldwide in industries as diverse as sawmills to pharmaceuticals, organisations have been steadily realising the gains in productivity, safety, economy and quality. Some of the typical applications of robots have Reduce operating costs been: Improve product quality & consistency Assembly: Robot applications Improve quality of work for employees become very important in areas Increase production output rates where the tool is heavy, noisy Increase product manufacturing flexibility or dangerous. Reduce material waste and increase yield Cutting applications: Robots Comply with safety rules and improve workplace are the perfect tool for many cutting jobs. Laser, plasma and health & safety water jet cutters are often fitted Reduce labour turnover and difficulty of recruiting to the robots. Due to the workers dangerous nature of these Reduce capital costs (inventory, work in progress) technologies, robots are the Save space in high value manufacturing areas. obvious choice. actuators can be powered by electric motors, linear actuators, series elastic actuators, air muscles, electroactive polymers (EAP), piezoelectric motor or elastic nanotubes. The control of a robot involves three distinct phases: perception, processing and action (robotic paradigms). Sensors give information about the extraneous environment and the robot itself, like the position of its end effector. This information is processed to calculate the appropriate signals to the actuators, which move the mechanical parts. The processing phase may translate raw sensor information, directly into actuator commands. Sensor fusion may also first be used to estimate parameters of interest like the position of the robotâ&#x20AC;&#x2122;s gripper. Robotic systems may even have varying levels of autonomy. Direct interaction, used for haptic or tele-operated devices, has complete control over the robotâ&#x20AC;&#x2122;s motion. Operator-

ADVANTAGES OF ROBOTICS

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Flexible manufacturing system offers flexible processes to permit rapid switching from one product line to another at a minimum change-over cost. lexible manufacturing system (FMS) imparts some amount of flexibility for manufacturing operations in case of changes, whether predicted or unpredicted. The flexibility can be segregated into three categories: Basic: Flexibility of machine operations and material handling in the shop floor System: Flexibility of routing paths, throughput capacity and set-up Plant: Flexibility of production without a

ability to easily switch from one kind of task to another. The combination of flexible plants and workers would create plants that can adapt to demand pattern changes, in real-time, using movable set of equipment, knock-down walls and re-routable utilities. For example, car manufacturing process can be carried out on movable pallets rather than on assembly line by multi-skill operators who are not attached to a particular line. This concept can be easily deployed for mass manufacturing, which involves repetitive mode of production, stable

AGVs, a tool storage, and an assembly storage). AGV plays a central role in the FMS concept. AGV is a mobile robotic vehicle, which follows markers on the floor, or uses lasers for guidance. They are used in the industry to automate material movement around a manufacturing plant or a warehouse. An AGV can tow objects in trailers to which they can get autonomously attached. The AGV can also put objects on conveyors. Some AGVs can use forklifts to lift and move objects for storage. With or

major capital investment. Early FMSs were built as a section, with automated CNC machines, connected by material handling systems. In the current version, FMS is defined as a combination of few, flexible cells, and each flexible cell is a combination of few CNC machines coupled with material handling systems. Apart from automated CNC machines and material handling system, the FMS has a central control computer for controlling material movements and machine operation so that it can handle a family of parts for which it has been installed. Primarily, the FMS concept proposes flexible processes to permit rapid switching from one product line to another, at a minimum change-over cost. This also calls for a multi-skilled workforce, having the

production loads, medium to large throughput, operations requiring two or three shifts, as well as components & assemblies handling. The hierarchy of FMS may consist of following layers: Flexible manufacturing module (eg. combination of a CNC machine, a pallet changer and a part buffer) Flexible manufacturing (Assembly) cell (eg. combination of three modules and an automated guided vehicle (AGV)) Flexible manufacturing group (eg. combination of three cells and two AGVs, which will transport parts from a loading zone - through machines - to an unloading zone) Flexible production system (eg. combination of a group, a cell, two

without FMS, AGVs are now employed in various industries like pulp & paper, pharmaceuticals, chemicals, metals, news print, automotive, and light engineering manufacturing. AGVs are used in a wide variety of applications to transport different types of materials through pallets, rolls, carts, containers, etc.

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CASE IN POINT Volvo has adopted FMS for greater flexibility in their operations and to satisfy different market segments (customisability). Volvoâ&#x20AC;&#x2122;s process structure makes cars on movable pallets (rather than an assembly line) enabling flexibility. Also, the system has more flexibility because it uses multi-skill operators who are not paced by a mechanical line.

TECHNOLOGY SOLUTIONS TO IMBIBE

Using high speed machining, manufacturers can now increase their overall productivity as the system help increase the efficiency of cutting, by decreasing the machining time & cost, and increasing the accuracy and quality of work. igh speed machining (HSM) is a low-waste, highefficiency machine, defined as one of the modern machining technologies, which, in comparison to conventional cutting, increases the efficiency of cutting, by decreasing the machining time & cost, and at the same time, increases the accuracy and quality of the workpiece. HSMâ&#x20AC;&#x2122;s cutting speed is four to six times the speed of conventional machining. Products manufactured with HSM have excellent surface finish with an increase in total machining time. The increase in cutting speed calls for a new type of machining system. This means a change in machine tool, cutting tool, CNC program, etc. The use of high feed rate (above 1m/min) with high speed (spindle speeds greater than 10,000 rpm) increases the metal removal rate, but the machine, in turn, requires lighter inertia tables, powerful motor drives, and more responsive control systems. Advanced materials like composite materials, heat-resistant alloys, stainless steel alloys, bimetals, compact graphite iron, hardened tool steels, aluminium alloys, etc. need HSM for a better machining efficiency. HSM also competitively produces complex tooling, in a single setup.

BENEFITS OF HSM It reduces machining time, and hence, cost of production. It augments quality by eliminating manual finishing of dies or moulds.

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It eliminates the number of set-ups, and simplifies the flow of material. It enhances machine tools life. In HSM, the cutting tool and workpiece temperatures are kept low, due to short engagement time resulting in increased tool life. The increase of cutting speed decreases cutting forces. The shallow depth of cut reduces the radial forces on tool and spindle, which enhances the life of the spindle bearings and guideways. Because of lesser deflection of tool, surface finish is better (Ra 0.2 micron). Though HSM processes are increasingly being used in modern manufacturing, there exist some drawbacks that may nullify its gains. Such processes can lead to discontinuous chip formation, correlated with increased tool wear and less accuracy in the machined part. The variations in cutting force can produce severe vibrations, which are detrimental to the tool life, machine tool life, as well as workpiece geometry and finish. HSMâ&#x20AC;&#x2122;s grown popularity in the tool making industry is due to possibilities of shortened delivery time, better productivity, and increased profitability. In some cases, retrofitting a faster spindle to a conventional machine tool can realise some of the HSM benefits. But the increased cutting speed will introduce dynamic stability problems into the machine tool components. The commercially available high-speed machines are available with DN number (spindle diameter in mm multiplied by the spindle speed in rpm) in the range of 1.5

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million. Machining at surface speed higher than 915 m/min is common in HSM. Spindle dynamic characteristics at high speed showed that a spindle with angular contact ball bearings exhibits some change in dynamic stiffness as the speed increases. The cutting and holding tools used in HSM are designed for specific purpose machining. The tools have reinforced cutting edges, with zero or negative rake angles. Tools have thick core for withstanding maximum bending. Different designs of tool & tool holder interface are available for reducing the instability. Shortening of the overhang portion and shrink fit tooling are commonly used features. The development of super-hard-cutting-materials such as cubic boron nitride and poly crystalline cubic boron nitride has created many new applications for HSM. Tooling with exotic coating technologies can withstand the high temperature produced in HSM. The productivity of the HSM machines depends on the quality of NC programmes. NC programmers need to deploy machining strategy to construct tool paths in order to anticipate the cutting tool for its engagement with the workpiece. They avoid sharp turns and slow execution. The servo controllers must be able to position the drives, accurately. The programme should be able to precisely identify where the stock is available after each cut so that the cutter load can be constant. To perform HSM, it is necessary to use rigid and dedicated machine tools & controls, with specific design features and options.

TECHNOLOGY SOLUTIONS TO IMBIBE

Predictive maintenance techniques determine an equipment’s conditions, which predict when maintenance should be performed. As tasks are performed only when warranted, this approach offers cost savings over routine or time-based preventive maintenance. ndustry surveys recently have revealed that more than half of all maintenance excercises have been done reactively. In the process industry, globally, these numbers seem to have not changed over the last 20 years. Traditionally, the manufacturing and utility industrial units have identified maintenance as a function to be undertaken by all departments based on some norms. Thus, the concept of breakdown maintenance came into existence for non-critical machines, while preventive maintenance was adopted for not-so-large & semi-critical group of machines, and predictive maintenance addressed the critical issues confronted by large and critical group of machines. Predictive maintenance has been in vogue since the last decade. Special purpose sensors, instruments and monitoring systems, collect various inputs (related to machine operation like vibration, thermograph, lubricant oil characteristics, etc.), analyse such information, and provide trend reports to plant maintenance engineers. Wireless sensor networks are increasingly being used to gather information on equipment. Selforganising meshes of wireless vibration sensors can be deployed for identifying trouble before equipment malfunctions. The predictive diagnostics of asset management applications are directly integrated with process control system. On the other hand, maintenance departments are also continuously improving the

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maintenance procedures and policies, thereby enhancing the cost-effectiveness of the entire operation. However, all these efforts fall short of identifying the crucial question of ‘what is likely to fail’ and ‘when it is likely to fail.’ It is extremely important to signal that the particular type of failure will, probably, occur ‘soon’, allowing the user, time to organise spare and the service, to be ready with alternatives. The ‘predictive’ concept has now been taken to another level. Just as computers have diagnostics loaded with the OS (for self-checks on things like RAM, hard disk, and processing load, etc.) that provide warnings when these resources are short; the machineries, along with the related automation systems, will include predictive diagnostics. For example, a turbine generator might have indicators, which show ‘minor trouble’ due to ‘shaft vibration’ crossing ‘limits’, but the machine systems may ‘continue operation’. The diagnostics will also trigger the troubleshooting steps. The same set of machine might be stopped by the same diagnostic system because self Industrial equipment will increasingly contain embedded programmes, containing operating information and self-diagnostics, in order to minimise the need for plant maintenance personnel. Beyond just showing the probable causes of failure, integrated diagnostics will be predictive (before failure), preventive (precautionary) and advisory (providing maintenance instructions).

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troubleshooting will not be feasible. Given the criticality of continuous operation by the machines in power plants, refineries, petrochemicals, utilities etc, it becomes imperative that the machine’s health is continuously monitored and maintained proactively. Industrial equipment will increasingly contain embedded programmes, containing operating information and self-diagnostics, in order to minimise the need for plant maintenance personnel. Beyond just showing the probable causes of failure, integrated diagnostics will be predictive (before failure), preventive (precautionary) and advisory (providing maintenance instructions). Embedded systems are becoming an important part of equipment in capital intensive plants. It appears that this system can even be retrofitted into old equipment wherever feasible, thereby changing the whole concept of conventional maintenance service at the plants. The benefits are obvious. The higher cost of such systems will be offset by the huge gains, due to prevention of the unplanned loss of production. However, proprietary diagnostics technology will create a dependency on the suppliers, which the manufacturer will not be able to cutoff easily. It is advisable to train the plant personnel on such technology before installation and commissioning take place so that the machines are brought into the realm of existing maintenance procedures albeit with minimum maintenance tasks.

DESIGNCOMPONENT IS A CRITICAL IN THE INNOVATION

PIPELINE

“Manufacturers can stay one step ahead of their competitors with innovative designs that streamline product development and speed the delivery of new products to market. Innovative design practices also allow customers to be more sustainable by visualising and simulating how products will perform before they are built, saving materials and decreasing waste,” affirms Robert “Buzz” Kross, Senior Vice President – Manufacturing Industry Group, Autodesk during an interaction with Prerna Sharma. Excerpts…

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GAME CHANGERS

INDIAN MANUFACTURING ON A GLOBAL CANVAS There is no question that India is an increasingly important player in worldwide manufacturing. In fact, UNIDO (UN Industrial Development Organization) has ranked India as one of the world’s top ten countries in industrial production. India now surpasses Canada, Brazil and Mexico, according to UNIDO. Additionally, the growth that elevated India to tenth place is accelerating. The Index of Industrial Production (IIP) shows nearly 20 per cent growth in the Indian manufacturing sector from April 2009 to April 2010. What’s more, this growth is not coming with any sacrifice on quality. India has the largest number of companies, outside Japan, that have been recognised for excellence in quality. Clearly, India is excelling in manufacturing, and now it has an opportunity to enhance its manufacturing productivity.

ENABLING FACTORS FOR INNOVATION At Autodesk, we believe design is a critical component in the innovation pipeline. Manufacturers can stay one step ahead of their competitors with innovative designs that streamline product development and speed up the delivery of new products to market. Innovative design practices also allow customers to be more sustainable by visualising and simulating how products will perform before they are built, saving materials and decreasing waste. Many of our manufacturers around the world are asking their engineers to take more cost out of current products and drive more innovation with fewer resources. This requires investment in new technologies like simulation, visualisation and electrical controls design. Most importantly, you have to squeeze more out of your existing product lines. Small teams are responsible for not just design and engineering but really great visualisation, so the idea gets to production. Many manufacturers have experienced sales and marketing cuts also, increasing demands on the engineering team to provide 3D marketing content.

MEASURING THE SUCCESS OF INNOVATION Indian manufacturing is still warming up to the idea of technology as a driver of productivity. Adoption is relatively slow in

comparison to India’s counterparts in other developed economies. Lack of awareness of global technologies and trends in manufacturing IT have also contributed to this lower adoption. Adoption of manufacturing IT solutions in India has so far been concentrated in the oil & gas and automotive sectors. However, pharmaceuticals, chemicals, food & beverage and consumer packaged goods are expected to significantly increase IT adoption, thereby, facilitating the manufacturing IT market in India to grow in excess of 15 per cent over the next several years. To meet this opportunity manufacturers need to adopt digital prototyping.

FACTORY OF FUTURE: A DRIVER FOR GROWTH IT-enabled manufacturing technologies are key to lead a manufacturing transformation across the factory that can drive efficiency, high productivity, competitiveness and sustainability. Recent report released by CIMdata pointed out that there is typically a great divide between the CAD capabilities provided to product (and manufacturing equipment) designers versus those available to manufacturing engineering organisations. Product engineers are quite used to having state-of-the-art, integrated suites of design tools. Manufacturing and production engineers, on the other hand, have historically worked in 2D design environments for developing building designs and production facility layouts. CIMdata forecasts digital manufacturing market to grow at a CAGR of over 4.4 per cent over the next five years to exceed $650 million. When we talk to manufacturers, we find specialised 3D Digital Factory tools have been mostly out of reach due to the software’s complexity or high cost. Manufacturing and production engineers have instead relied on 2D design environments for developing building designs and production facility layouts. Consider an automotive giant like GM who faces the constant challenge to consolidate or retrofit existing facilities as it restructures or introduces new models. What is GM using today for their facilities layout? It’s AutoCAD. Of course GM, being a technology leader, is not stopping there – they also apply Autodesk 3D design techniques to their facilities, to

develop digital prototypes of their facilities before build-out. Using Autodesk 3D software has already saved nearly $1 million for GM. Recognising the need for an easy to use, cost-effective solution that helps companies of all sizes design their factories profitably, Autodesk offers a 2D and 3D factory design software suite that simplifies layout of manufacturing facilities and production lines.

TOP 5 FUTURE TECHNOLOGY TRENDS Users are increasingly mobile and using mobile Apps & devices, and there are new generations of design software users with different expectations of design software. They expect zero learning curve interaction. Cloud computing will also continue to grow in importance. Our view is that desktop software and online services will interact and that the lines between desktop applications and web applications will become a blurred continuum over time. We expect that SaaS will help enable Autodesk to expand the types of solutions we offer to our customers, not reduce them. SaaS and Cloud Computing will extend the functionality of desktop applications with high performance visualisation, simulation, and analysis and offer our customers the ability to do things they couldn’t do before such as on-demand processing that could provide nearly infinite computing power, new ways to collaborate with teams over great distances, and the ability to use a broader set of Autodesk products. With consumer demand for greener products increasing, as well as ecoresponsibility regulation coming down in many global markets, designers and manufacturers are looking for more tools to help them choose more sustainable materials.

YOUR ADVICE TO SMEs TO ADOPT THE BEST IN CLASS TECHNOLOGY I travel the world talking to all size manufacturers – from small to the very largest and from what I hear about today’s global competitive environment, 3D is not enough for product designers to compete and win anymore. The ability to work with digital prototypes sets apart the companies who are best in class.

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GAME CHANGERS

COMPANIES NEED TO TAKE A

HOLISTIC LOOK AT THEIR

SUPPLY CHAINS

“Enterprise software can be leveraged as a tool to manage, execute and measure environmental sustainability initiatives,” opines Sunil Jose, VP – Applications, Oracle India, in an exclusive interview with Sudhir Muddana. Excerpts… ENABLING TECHNOLOGIES TO BUILD FACTORY OF FUTURE

TECHNOLOGICAL DEVELOPMENTS SHAPING UP

As manufacturing begins repositioning for recovery, players across the sector, are all looking for technologies that will help them accelerate innovation and time-to-market. They are also emphasising on maximising customer relationship capital, driving growth through customer-centric processes and optimising on demand-driven supply chain performance. Some of the crucial enabling technologies that would ascertain the same are: Sales and operations planning solution – to provide holistic, accurate and actionable global planning capabilities Integrated business planning solutions – to align operational plans to financial results Product life cycle management (PLM) – to make better product portfolio decisions, collaborate across design and supply chain partners, accelerate new product introductions and manage compliance Business intelligence (BI) solutions – to build insight driven enterprises SOA technology – to maximise value for existing legacy environments with open standards based middleware CRM solutions – to deliver superior customer experiences and transform service operations Value chain planning (VCP) – to move beyond basic MRP to profitably balance supply and demand, optimise operations to minimise costs, and manage supply chain risk for resiliency and maximum performance Value chain execution (VCE) – to improve warehousing, transportation and trade management capabilities.

Indian manufacturing sector has come out of recession with a very positive outlook. They have realised the strategic value they can derive from IT if they invest in solutions that are complete, open and integrated, which can power their information-driven supply chains. In the coming years, manufacturing companies will require technologies that can help them: Predict market requirements Innovate in response to volatile market conditions and, Align operations across global networks. These can be achieved by deploying business applications that span product

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GAME CHANGERS

development, demand management, sales & operations planning, transport & supply management. In addition, they must invest in industry specific business solutions that offer them a unique competitive advantage in the marketplace.

GREEN TECHNOLOGIES MAKING A BEELINE The increasing complexity of environmental regulations, more sophisticated customer requirements and growing shareholder awareness are all converging to spark sustainability initiatives throughout the supply chain. There are many factors to consider for companies that want to become more environmentally sustainable, but clearly supply chain is the key. Companies need to take a holistic look at their supply chains to identify and create an eco-advantage whether to reduce costs, drive revenue or build brand equity. Enterprise software can be leveraged as a tool to manage, execute and measure environmental sustainability initiatives. Greening the supply chain can generate environmental benefits and financial results by: Reducing risk by managing a product’s environmental compliance in its design rather than making any necessary costly corrections later in its lifecycle Optimising supply networks for production cost and time, as well as environmental cost and risks by using strategic network optimisation tools Reducing manufacturing costs and environmental impacts by applying lean manufacturing principles to environmentally sensitive components and production operations Reducing transportation costs while also reducing emissions using transportation management tools Reducing energy costs and extending the life of assets by managing them more efficiently using enterprise asset management and intelligent device monitoring Increasing reverse supply chain efficiencies while addressing increasing product take-back requirements using warehouse management and depot repair solutions Measure the carbon footprint across your facilities to help reduce GHG emissions, identify cost saving opportunities, meet regulatory

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requirements and demonstrate environmental responsibility.

DESIGNING FUTURE MANUFACTURING PROCESSES Although manufacturing organisations are adopting artificial intelligence (AI) and virtual reality (VR), these technologies often end up with manufacturing processes holding islands of information that are not connected. Companies will find many manufacturing execution systems (MES) being used to manage the shop floor, but they have no link to business processes. Over the last two decades, manufacturing companies have implemented many systems and processes to eliminate excess inventory and waste from their supply chain. These lean strategies have been successful, and so the focus has shifted towards improving the responsiveness of the manufacturing process itself. This requires dramatically improved interaction between manufacturing shop floor systems and the back office ERP. Oracle has invested in the future of MES to connect the shop floor PLC/ SCADA systems to business processes, which allows plant managers to have complete shop floor visibility across multiple plants. Oracle has adopted and leveraged standards such as ISA95 that helps in linking shop floor (sensor, meters, PLC’s/SCADA) to business process applications (ERP). This helps in standardising the way companies evaluate and analyse shop floor data across multiple plants and streamlines the performance indicators. The future manufacturing process should enable real-time connectivity from the shop floor to planning and be able to monitor and measure performance.

DRIVING NEW PRODUCT DEVELOPMENT PROCESS Shrinking product lifecycles, global competition, supply chain complexity, and increasing customer demands have made it more challenging to bring winning products to the market. Today, leading companies are increasingly looking for broader solutions to better manage cross-functional product lifecycle business processes across their global product networks. Product lifecycle management (PLM) has enabled companies to accelerate product innovation and maximise product profitability through the management of the information, processes and decisions about

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their products and throughout the product lifecycle. With Enterprise PLM, organisations can leverage all business and technical information related to products, creating a seamless flow of product information throughout the enterprise and across the product network. Enterprise PLM also allows companies to extend the value of PLM beyond the engineering department while implementing best processes across design, development, manufacturing and service. PLM is a tool not only to reduce the risk of creating inaccurate products that fail to comply with legislation, it is also a means of allowing businesses to streamline processes, cut costs and boost profitability.

EMERGING TECHNOLOGY TRENDS According to me, top five future trends in manufacturing would be: Open standards based technology infrastructure Enhanced analytics for effective decision making Industry-specific functionality in business applications Logistics technology (emerging as a very critical component in the entire supply chain management cycle) On Demand/ SaaS.

TECHNOLOGY ADOPTION BY SMEs The growth of the SME sector in India has been phenomenal. They represent a substantial portion of the global supply chain – as suppliers, vendors, partners or even customers. Even though there continues to exist companies who operate on manual or basic automation processes, there are many mid-sized companies that are investing in new and advanced technology tools to gain a competitive advantage. While financials and accounting could be the most popular business software application adopted as phase I of IT, some companies have also completed phase II of their IT implementation with ERP or CRM. These companies are moving to more sophisticated software that help in demand planning (like Oracle Demantra), product life cycle management (Oracle Agile), transportation management, enterprise performance and analytics among others. Indian SME companies have advanced and are implementing specialised solutions to improve their business and profitability.

Photo By Dipti Desai

DRIVING EFFICIENT

OPERATIONS OPERATIONS NEEDS NEEDS REINFORCEMENT OF

INNOVATION

“Organisations need to revisit their strategies on selection of the right skill set so that a complete ownership takes place, right from initiation to the delivery of the project,” says Rajamani Srinivasan, VP – Solutions Engineering, SAP Indian Subcontinent. Srinivasan stresses on the criticality of IT solutions in making Indian manufacturing a global frontier during an interaction with Prerna Sharma. Excerpts… BLUEPRINT FOR MANUFACTURING TRANSFORMATION According to a study conducted by Deloitte and the US Council on competitiveness, China outperforms India when it comes to manufacturing competitiveness. The gap, they say, will only narrow down over the next few years. Hence, there is growing evidence of India emerging as the new destination for global manufacturing. With dominant issues like inability to cope with shorter cycle times to meet customer needs and innovation for product differentiation, enterprises today need to embrace smarter technologies that can help them respond to customer demand at a moment’s notice. So, IT solutions, like supply chain management, supplier relationship management, customer relationship management and business intelligence

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software are the building blocks for the manufacturing sector, as they help enterprises capitalise on the market opportunities by streamlining processes and providing greater operational efficiencies, at the least cost. Serving as a blueprint for manufacturing transformation, technology solutions can help enable companies create a perfect plant by integrating planning, asset management and execution with real-time visibility.

ACHIEVING LONG-TERM PROFITS VIA INNOVATION Today, manufacturing businesses worldwide are far more conscious of their business strategies. With increased economic risks, enterprises want to ensure business longevity that is moving towards long-term profits, rather than short-term gains. In such a scenario, manufacturers need to adopt

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sustainable innovation. Here is why: Sustainable innovation ensures efficient manufacturing that reduces manufacturing costs and addresses customer needs while adhering to compliance norms. Sustainable innovation increases brand value, luring stakeholders to generate business prospects in India and around the world. Sustainable innovation helps empower an organisation with the specific quality and regulations on the local, regional and global level processes.

ENABLING FACTORS FOR INNOVATION Some of the factors that can enable enterprises in bringing about innovations include: Enterprises need to focus towards innovation networks

GAME CHANGERS

Organisations should focus on collaborating with the value chain and other business associates like distributors, bankers, logistics, etc. Business models and process orchestration driven with ICT platform and infrastructures help companies in deriving better value out of IT investments. Appropriate vendor selection Today, manufacturers need to make the right decision in associating with technology solution providers who can provide quick ROI at the least time, thus enabling them to attain long-term benefits. Identifying team members Human resource is the greatest contributor to the success of any project. This holds true for a successful IT solution implementation as well. Hence, organisations need to revisit their strategies on selection of the right skill set so that a complete ownership takes place, right from initiation to the delivery of the project. Concentration on training The transformation of a company depends on its workforce. So, it is imperative that the workforce be provided with appropriate training and mentorship. Also, apart from establishing appropriate IT infrastructure, it is important for enterprises to increase the gradient of knowledge creation and provide guidance through training programmes. Focus on customer-centric innovation Manufacturers should focus on integrating their customer-centric processes like sales, service, and marketing, along with product development. SAP’s PLM software helps to bridge the gap and bring a broader focus in comparison to engineering, designcentric narrow focus that CAD software vendors push. Analyse market trends Manufacturers need to keep an eye on the market trends, competition and areas of focus, to appropriately build their business strategies and innovation. Business intelligence and analytics has emerged as the best tool in this aspect. Measurement of key business outcomes is required in the current time as it helps in gaining competitive advantage.

EVOLUTION OF INNOVATION OVER THE PAST DECADES In order to match up with the change in business networks, today’s era needs enterprises to be fast and agile. Being cognisant of this, enterprises, across industries, are moving towards innovative

strategies and products that can deliver maximum operational excellence at the least cost and with minimum investments on IT infrastructure deployment. The fundamental approach to innovation is to refocus on the end customer and drive the entire enterprise to deliver value to the end customer. Innovation-centric manufacturers measure the success of innovation in terms of the marketshare acquired from competition, by hike in the number of new products and the percentage of revenue obtained from new products.

YOUR INSIGHTS ON THE FACTORY OF FUTURE By going beyond the traditional system integration, world-class manufacturers are turning various challenges in the manufacturing sector into a competitive advantage. They are using interoperability to dynamically align core operational business processes. Thus, with significant growth taking place in India, it is important for enterprises to focus on the following aspects: Investment in innovation: Constant engagement in R&D of products and process to upgrade the quality and performance standards is the basic ingredient for manufacturing excellence. Smarter technologies: The key to success for the manufacturing industry lies in embracing smarter technologies to streamline their business, gain visibility of assets and set competitive advantage in the market. Some of the specific areas in technology adoption that manufacturers need to dwell into are: Appropriate and customised solutions for manufacturing: This not only helps consolidate business processes but also provides predictive analysis and helps manufacturers keep an eye on competition. IT trends: With cloud computing technology, infrastructure management and virtual factoring have become the new trends in key manufacturing sectors such as automotive and aerospace. India, with its IT power, can certainly become the most touted destination in the manufacturing space. Appropriate vendor selection: Today, manufacturers need to make the right decision in associating with technology solution providers in order to appropriately align IT to their

business needs. Focus on social innovation: With the world going digital, concepts of social innovation, community-driven manufacturing and personalisation of products are gaining ground and so, manufacturers need to leverage the opportunities in this segment as well.

GREEN MANUFACTURING TECHNOLOGIES With the increasing pressure of reducing carbon emission, the manufacturing industry has also realised the importance of environmental norms. It is therefore imperative that every manufacturer starts measuring their carbon emissions as the starting point, even before they consider reduction. The good news is that most forerunners and thought leaders who have invested in greener technologies have got handsome returns. Green technologies can be driven either within their own manufacturing operations or in their upstream and downstream value chain. A much stronger myth is that IT’s role in addressing sustainability objectives is confined to ‘Green IT’, or reducing the use of energy in data centres. However, the fact is that while the savings can be substantial, only two per cent of all carbon emissions can be traced to this source. The use of IT lies in addressing the remaining 98 per cent of carbon emissions. Following are some of the ways that can help manufacturers become sustainable: Establish a comprehensive inventory of carbon emissions and other environmental impacts. Quantify and compare carbon intensity across your operations – by process, product, and/or facilities. Achieve consistent cost savings by prioritising optimal opportunities for energy and emissions reductions, based on financial and operational parameters. Manage performance of the entire project portfolio, with detailed insight into the key performance indicators of each initiative. Monitor and benchmark enterprise performance against both internal goals and best practices. Streamline carbon registry reporting, communications, and compliance in accordance with global standards like GRI.

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GAME CHANGERS

TECHNOLOGY DRIVING THE TRANSFORMATION OF MANUFACTURING According to the recent research report from Gartner, IT end user spending in India will reach approximately $67 billion in 2010 – an increase of 14.1 per cent over 2009. Technology innovation has undoubtedly contributed towards the success of all the major industries and sectors in India including manufacturing. Process integration through technology solution helps in transforming the manufacturing operations strategy to anticipate change, improve flexibility, ensure high-performing assets, and operate in a high intensity, demand-driven environment, without compromising on service or increasing costs. With newer technology innovations approaching the manufacturing market, this ‘mobile’ industry is poised to go to the next level of growth, where process complications will be addressed on the go. Hence, technology innovations will bring in a complete chain of automated processes in the next five years starting from planning, to execution and quality analysis, leading to the perfect plant of tomorrow.

ARTIFICIAL INTELLIGENCE AND VIRTUAL REALITY LEADING THE GROWTH WAVE Manufacturing is becoming sophisticated in many industries and flexible manufacturing and reprogrammable technologies are being put in place to drive efficiencies. Traditional manufacturing cannot be costeffective to produce large volumes of different product types in a flexible manner. Sophistication in shop floor brings in a greater capability to react to demand changes, in addition to a whole bunch of other benefits. Virtual reality technology is regarded as a natural extension to 3D computer graphics. With advanced input and output devices, it brings a completely new environment to the computer-aided design (CAD) manufacturing. Virtual reality helps in solid modelling of processes and helps in intuitivism through constraint based manipulations. Similarly, artificial intelligence helps in simulating a human’s ability in dealing with ambiguity. The requirements for a computer that can exhibit human-like intelligence – including musical and artistic aptitude, creativity, the ability to move

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Serving as a blueprint for manufacturing transformation, technology solutions can help enable companies create a perfect plant by integrating planning, asset management and execution with real-time visibility.

physically through the world, and emotional responsiveness – has been estimated to require processing power on the order of 20 million billion calculations per second. The Indian manufacturing sector is not expected to rush in to bring these sophistications fundamentally due to the huge investments involved. This is the new reality of modernising traditional manufacturing for better business outcomes and gaining competitive advantage. Before that, the question of incremental change versus drastic change and cost benefit needs to be addressed. But in all this, the real benefit comes in when the business applications are integrated with the automations on the shop floor.

TOP FIVE FUTURE TECHNOLOGY TRENDS Enterprise mobility: The Mobile Enterprise Application Platform has significant growth opportunity in the coming years. This is due to an uptake of new devices, such as the iPad and smart phones (with BlackBerry, Apple iOS, Windows 7 and Android operating systems) that provide greater speed of delivery, ease of use and rich customer experience. Today, enterprises are aggressively reaching out to customers through mobile applications. Cloud computing: According to Gartner, revenue of cloud services worldwide would surpass the $56.3-billion set in 2009. By 2013, Gartner forecasts the market to reach $150.1 billion. With economic instability, enterprises are adopting software as a service or preferring cloud computing, to reduce their capital expenditure (CAPEX) as well as operational expenditure (OPEX). Although cloud computing has gained momentum, there are still security concerns to be addressed. Advanced analytics: Business Intelligence (BI) and analytics have been the turnkey contributors to organisations today, enabling them to take strategic decisions using BI.

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The unique trend in this space is that of verticalised business intelligence solutions available in the market. They are being deployed with renewed vigour, replacing legacy soloed prediction models, making them more role-specific in nature. Green technologies: Adopting sustainability and green practices are the key steps towards safeguarding any business. Enterprises in India have gradually understood this core message. Organisations today are adhering to and adopting green technologies like virtualisation and cloud computing to reduce carbon emission emitted through servers at the data centres. Social computing or use of social media: Enterprises today, have taken their business association from the boardroom to the actual digital platform. From receiving customer requests, to chasing their buying patterns, to watching the closest competitor’s move, social media has truly been a trend setter for 2010. Today, social media is used as a process of business engagement. It is used for marketing or promotion of products, luring clients and tracking information. India too has been witness to this social media exponentiation.

TECHNOLOGY ADOPTION BY SMEs In India, the presence of SMEs is approximated at 35 million. Despite increasing competition and constant pressure of cutting cost and going global, SMEs in India have emerged as early adopters of technology, with innovation being their mantra for success. In order to help the SME segment attain their target of becoming the best-run businesses, it is important to address their challenges of greater efficiency at lower cost of investment, quick response time to customers and integration of resources throughout the system.

YOUR ADVICE TO SMEs TO ADOPT LATEST TECHNOLOGY Indian SMEs have been smart enough to move from the nascent stage of technology adoption in the industry. However, with India being the most sought after destination for manufacturing, SMEs need to match pace of business and dynamic customer demands. This can be done by embracing appropriate technology solutions that addresses their specific requirements in an unmatched price range.

PRODUCT INDEX To know more about the products in this magazine, refer to our â&#x20AC;&#x2DC;Product Indexâ&#x20AC;&#x2122; or write to us at search@infomedia18.in or call us at +91-22-3003 4684 or fax us at +91-22-3003 4499 and we will send your enquiries to the advertisers directly to help you source better. Product

Pg No

AC drives 97 AC motors 57 AC servo 34, 115 AC sync motors 45, 131 AC/DC panels 84 Acoustic enclosures Back gatefold Actuation systems Front inside cover Agitator seals 116 Air compressors 89, 207 Air dryer & filters 207 Air gauges 189 Air nozzles 193 Air treatments 161 Air-cooled heat exchangers 5 Air-cooled reciprocating compressors 89 Air-cooled steam condensers 5 All-geared auto-feed pillar drilling machines 203 All-geared auto-feed radial drilling machines 203 Alu-cera polymers 1 Aluma coat 1 Aluminium oxide ceramic composites 1 Aluminium processing 147 Aluminium profiles 45, 131 Aluminium worm geared motors 78 Angle grinders 211 Angular boring machines 231 As series gearboxes 12 Assembly lines 55 Assembly technology 77 Association 9 Auto belts & oils seals 159 Auto gauging stations 189 Automatic rolling shutters 15 Automatic spray guns 181 Automation & process controls 47, 67, 113, 127 Automation & security systems 249 Automation & storage systems 41 Automation solutions 107 Automation 2, 32, 123 Automotive automation 55 Aviation cog wheels 193 Axial fans 63 Back-geared auto-feed radial drilling machines 203 Back-geared fine-feed machines 203 Balance systems 165 Ball & roller bearings 206 Ball & roller screws Front inside cover Ball check valves 201 Ball screw actuators 45, 131 Ball screws 45, 81, 131 Ball valves 201 Bar feeders 107 Batteries & chargers 47, 67, 113, 127 Battery-operated pallet trucks 60 Bearing bushes 193 Bearings Front inside cover, 45 131, 98, 206 Bellow couplings 81

Product

Bench drilling machines Bench-type drilling machines Bevel gears Billet shearing machines Blanking lines Block type Boiler panel welding automation Bollards Bow shackles Brake motors Brake motors Bridge type milling machines Brushless DC motors Brushless motor controls Building automation Bushes Butterfly valves

Pg No

125 125 45, 131 6 147 14 90 15 222 16, 53, 78 57 90 12 12 123 45, 131 201

Cable carriers 81, 98 Cable connectors 98 Cable glands 85 Cables & leads for fixed instaction 41 Cables for bus systems 41 Cables handling & processing systems 41 Cables scanps 41 Cables 47, 53, 67, 113, 127, 134 Calendaring Front gatefold Calibration masters 189 Calibrators 2 Carbon fiber re-enforced products 193 Cargo lashing 222 CED coating machines 123 Centrifugal blowers 89 Centrifugal compressor package 89 Ceramic adhesive cement 1 Ceramic electrical heater parts 1 C-frame power presses 6 Chain conveyors 55 Chain pulley blocks 16, 222, 256 Chain slings 222 Chains 98, 159 Chemical pump vane & fluid dispensing parts 193 Chemicals & adhesives 47, 67, 113, 127 Chemlok coating machines 123 Chillers 177 CI castings 10 Circuit protection 47, 67, 113, 127 Clamping & braking elements 45, 131 Clutches & brakes 12 CNC 5-axis tube bending machines 96 CNC beam drill lines 96 CNC cutting machines 123 CNC high speed drill tap centers 195 CNC laser cutting machines 123 CNC lathes 133, 179 CNC machine solutions 142, 173, 191 CNC machines Back inside cover CNC oxyfuel cutting machines 123

Product

Pg No

CNC plasma cutting machines 123 CNC toolings 243 CNC turning centers Back inside cover CNC vertical lathes 10 CNC vertical machines 10 CNC vertical machining centers 11, Back inside cover CNC vertical turning lathes 10 CNC/VMC machines 137 Coating machines 123 Coating plants 123 Coating systems 123 Cold chamber die-casting machines 195 Cold storage dock-houses 15 Cold storage doors 15 Cold storage 241 Column drilling machines 125 Components handing systems 55 Compressed air systems 42 Compressor valve plates 193 Compressors 42, 89 Connectors & cable assemblies 14 Connectors accessories 41 Connectors 1B, 47, 67, 85, 98 103, 113, 127 Container cranes 215 Control cabinets 103 Control cables 134 Control panels 103 Control systems 103 Controllers 32 Conventional precision lathes 179 Conveyor chains 101 Conveyors & automation systems 15 Cooling tower motors 78 Cooling towers 5, 161, 183 Cost effective stepper motors 45, 131 Counters & power supplies 95 Counters rate products 2 Countersinks 87 Coupling connectors 1B Couplings 45, 131 Crab hoists 16 Crane-duty motors 16, 53, 78 Cranes 16, 256 Crimp contact & tools 41 Cross roller rings 45, 131 Crystals & oscillators 47, 67, 113, 127 Curvic 45, 131 Cushion dock shelters 15 Custom-made cables 41 Cutoff machines 211 Cutting machines 123 Cutting tools Front gatefold Cylindrical grinders 133 Data cables DC motors Dehumidifiers Desiccant dryers

41 57 199 89

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PRODUCT INDEX Product

Pg No

Diamond cutting & processing systems 51 Diamond tools 87 Diaphragm valves 201 Didactic equipment for training 103 Differential pressure transducers 14 Digital panel meters 111 Digital temperature controllers 111, 119 Dip spin coating machines 123 Dip-pipes 201 Discrete semiconductors 47, 67, 113, 127 Distribution boards 8 Dock levelers 15 Dock shelters 15 Doors 15 Double-acting hydraulic cylinders 253 Drill machines 203, 217 Drilling tools 87 Drills 211 Drives 13, 119 Dry vane pumps Back gatefold D-shackles 222 Dual channels with modbus 119 Dual wall polyolefins 151 Dynamic controllers 119 Elbows 201 Electric actuators 170 Electric controls 77 Electric drives 77 Electric forklift trucks 15 Electric motor lamination systems 147 Electric wire rope hoists 16 Electrical measuring instruments 84 Electrical products cable ties 85 Electrical 47, 67, 113, 127 Electromechanical cylinders Front inside cover Electro-mechanical linear actuators 45, 131 Electronic connectors 111 Electronic timers 22, 24, 26, 28, 111 Electronics products 85 Elevators 256 Embossing rolls Front gatefold Enclosures 47, 67, 113, 127 Encoders 95, 141 Energy conservation 209 Energy efficient motors 78 Energy efficient solutions 152 Energy meters 111 Energy savings cogged & poly-V belt drives 159 Engineering class chains and sprockets 101 Engineering plastic plugs & sockets 22, 24, 26, 28 EOT cranes 16, 256 Evaporative air cooler series 63 Evaporative cooling pad series 63 Expansion bellows 201 Eye bolts & hooks 222 Factory automation applications 255 Factory automation Cover-on-cover, 123 Fail safe assembly systems & consumer automation 55 Fans 47, 67, 113, 127 Fasteners & mechanical 47, 67, 113, 127 Fire shutters 15

Product

Pg No

Five-axis machining centers 139 Flameproof motors 57 Flange motors 53 Flange mounting motors 57 Flat belt conveyors 55 Flat cables for submersible pumps 41 Flat high tension single-twin igniting electrodes 1 Flexible cables & wires 41 Flexible couplings 45, 131 Flexible roller conveyors 55 Flow rate indicators 2 Fluid seal systems 163 Fluid 149 Fluidised bed coating machines 123 Flush bottom valves 201 FMCG & auto components 55 Foam-in-place packaging systems 135 Foot mounting motors 53 Force feed lubricators 253 Forging presses 6 Forklift trucks 129 Four-axis horizontal machining centers 139 Free flow conveyors 55 Frequency meters 84 Friction drop hammers 6 Friction screw presses 6 Gantry cranes 16 Gas springs 104 Gear boxes 149, 175, 237 Gear motors 12, 16, 149, 175, 237 Gear seals 193 Geared & flexible couplings 149 Gears 45, 131, 149 Glass & tobacco 55 Gloves 59 Glide coating machines 123 Gold purity (XRF) systems 51 Goliath cranes 16, 256 Grinding machines 44 Grinding media 1 Grinding tools for hard materials 44 Gun drills 87 Haconan-free cables 41 Hammers 6 Hand levers for butterfly valves 54 Handling system modules 103 Head face milling for cyl blocks 231 Healthcare 55 Heat exchangers 167 Heat shrink tubing 85 Heat sinks & HVAC 47, 67, 113, 127 Heavy-duty CNC machines 205 Heavy-duty drill machines 217 Heavy-duty drills 211 Heavy-duty magnetic drill stands 211 Heavy-duty radial drill machines 217 Helical inline geared motors/reducers 175 Helical-worm gear units 12 Heli-worm geared motors 78 Helmet 59 H-frame power presses 6 High-alumina wear resistant ceramic tiles 1

Product

Pg No

High-efficiency flameproof motors 78 High-efficiency standard motors 78 High-performance plastics 193 High-precision CNC turning centers 195 High-pressure blower 12 High-speed doors 15 High-voltage insulation wall polyolefins 151 Hmm technical guidelines 78 HOC dryers 89 Hoists 256 Hollow shaft worm gear motors 12 Horizontal CNC machines Back inside cover Horizontal machining centers Back inside cover Horizontal 195 HRC fuse bodies 1 HRC fuse fittings 111 Humidity & temperature transmitters 14 Hybrid steppers & drives 45, 131 Hydraulic buffers 253 Hydraulic cylinders 253 Hydraulic dock levellers 15 Hydraulic dock shelters 15 Hydraulic hoses 206 Hydraulic jacks 253 Hydraulic manual pallet trucks 60 Hydraulics 77 Hydro forming machines 147 IC counterbalanced forklifts 15 Imaging & vision systems 123 Inductive sensors 14 Industrial belts 159 Industrial ceramics 1 Industrial connectors 41 Industrial control & sensing devices 95 Industrial coolers 161 Industrial cranes 215 Industrial doors 241 Industrial electric AC motors 12 Industrial electric power distribution system 8 Industrial hoses 159 Industrial overhead doors 15 Industrial safety gears 59 Industrial shock absorbers 45, 131 Industrial shoes 65 Inflatable packaging systems 135 Inline helical geared motors 78 Inline shaft-mounted helical geared motors/reducers 175 Instrumentation & controls 21 Instrumentation made cables 41 Insulated doors 15 Interlocking doors 15 Inverter duty motors 78 Inverters 34, 95, 115 Isolators 4 Jib cranes

Kuman machine interfaces

34, 115

Large bearings Large helical & heli-bevel gearboxes Large size roll grinders Laser cutting systems Laser marketing & engraving systems

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PRODUCT INDEX Product

Pg No

Laser shaping 44 Laser systems 147 Laser welding systems 51 Lathe machines 10 Lead screws 45, 131 LED module pilot lights 111 LED signal tower lights 22, 24, 26, 28 Level controllers 95 Lift & conveyor cables 41 Lift trucks service 215 Lifting tackles 222 Lifts 256 Light duty drills 211 Light lifting 215 Limit switch boxes 170 Limit switches 22, 24, 26, 28, 111, 141 Linear actuators 45, 131 Linear ball & roller guides 45, 131 Linear bearings Front inside cover, 45, 131 Linear motion guides 45, 131 Linear motion 77 Linear sensors 141 Linear shafts & supports 45, 131 Linear speed guides 45, 131 LM guide actuators 45, 131 LM guideways 81 Loaders 129 Loading bay equipment 15 Locking elements 45, 131 Logic controllers 141 Loom switches 111 Loop powered isolators 2 Lop powered indicators 2 Lorry loaders 129 Low lift pallet trucks 15 LV motors 97 Machine tools accessories 81 Magnum spray guns 181 Main & sub-system assembly automation 55 Maintenance sprays 1A Manual pallet trucks 15 Manual powder coating systems 181 Mask 59 Material handling equipment 16, 60 Material handling equipment 222 MCBs 4 MCCBs 229 Measurement & inspection 47, 67, 113, 127 Measuring & monitoring relays 95 Measuring instruments 84 Mechanical seals 116 Medical & surgical devices 193 Medical 241 Metal cutting tools 169 Meters 84 Metric range connectors 1B Metrology solutions 197, 233 Micro control switches 111 Micro milling beads 1 Micro motors 141 Micro PLCs 34, 115 Microswitches 22, 24, 26, 28, 111, 141 Mighty tiny series 12

Product

Mill lining blocks Milling cutters Milling-cum-drilling machines Miniature microswitches Modernizations Modular PLCs Modular tooling system Molded cable assemblies Motion controls Motorised boom barriers Motorised stages Motors Movement technology Moving column machining centers Multimedia unions Multi-pole industrial connectors Multi-speed motors Multi-spindle drilling Namur sensors Needle roller bearings Office & computer Ohms meters Oil coolers On/off ball valves On/off butterfly valves On/off control valves On/off controllers On/off plug valves Optical encoders Optical measuring machines Optoelectronics & displays Orbital sanders Overhead doors Oxy-plasma cutting machines

Pg No

1 87 203 111 215 34, 115 87 111 34, 95, 115 15 45, 131 53, 57 181 231 104 70 78 125 14 206 47, 67, 113, 127 84 177 170 170 170 2 170 45, 131 189 47, 67, 113, 127 211 15 96

Packaging solution 7 Paint shop equipment 123 Paint shop machines 123 Pallet stackers 15 Panel coolers 177 Panels 84 Parallel shaft helical geared motors 78 Part ejectors 157 Passive components 47, 67, 113, 127 PBEGL geared motors 57 PC cards 213 PCB insertion conveyors 55 PD blowers 89 Pedestrian low lift pallet trucks 15 Pedestrian pallet stackers 15 Pedestrian/rider-operated counter balanced pallet trucks 60 PH+T indicators 2 Photoelectric sensors 95 Pick & move cranes 129 Pick & place robots 55 PID controllers 2, 119 Pillar drilling machines 217 Pilot lamp holders 111 Piston rings 193 Planetary gear heads 81 Planning machines 205 Planomilling machines 10, 205

Product

Pg No

Plastic chain conveyors 55 Plastic mould products 193 Plastic products 193 Plate bending machines 96 Plate lifting clamps 222 PLCs 45, 95, 97, 119, 131 Plug valves 201 Pneumatic actuators 170 Pneumatic seals 163 Pneumatics 77, 206 Polyaryletherketone 193 Polyester webbing 222 Polyetheretherketone 193 Portable coolant purifying systems 157 Portable oil skimmers 157 Powder coating/speedy painting equipment 99 Powder feeding systems 181 Power & line protection 47, 67, 113, 127 Power cables 134 Power chucking cylinders 133 Power modules 141 Power pack units 253 Power sources 121 Power supplies 141 Power tools 211 Power transmission accessories 159 Power transmission chains and sprockets 101 Precision assembly design services 55 Precision belts 45, 131 Precision locknuts 45, 81, 131 Precision rolling bearings 206 Precision steels 44 Pressure gauges 2 Pressure sensors 141 Pre-treatment systems 123 Process automation & control equipment 103 Process cranes 215 Profile controllers 119 Programmable logic controllers 45, 95, 97, 119, 131 Programmable terminals 95 Protective mailing products 135 Protective-conduit systems 41 Protocol converters 213 Proximity sensors 22, 24, 26, 28, 95 PTFE lined piping 201 PTFE lined systems 201 Pulling lifting machines 222 Pump seals 116 Pumps Inner gatefold, 3, 244, Back gatefold, Back cover Push button switches 111 PVC flap doors 15 PVC strip doors 15 Quenching presses Rack & pinions Racks & cabinets Radial drill machines Rail guides Range MS connectors Rapid flexible doors Rapid roll-up doors Ratchet lashings

231 45, 131 47, 67, 113, 127 203, 217 Front inside cover 1B 15 15 222

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PRODUCT INDEX Product

Pg No

Ratchet liver hoists 222 RCCBs 4 Reach trucks 15 Reamers 87 Reciprocating air compressors 207 Re-crystallised allumina tubes 1 Reducers 201 Reducing flanges 201 Refrigerated dryers 89 Relay sockets 111 Rental powers 49 RFID 95 RH+T controllers 2 Rice rubber rolls 159 Right-angled helical bevel geared motors/reducers 175 Right-angled helical worm geared motors/reducers 175 Robotic cables 41 Robotic welding machines 39 Rod end/link ball/cam & roller followers 45, 131 Roll turning lathes 10 Roller beds 90 Roller conveyors 55 Roller screw 45, 131 Roots blowers Back gatefold Rotary dampers 104 Rotary joints & unions 104 Rotary screw air compressors 89,207 Rotating unions 104 Round endless slings 222 Round linear guides 45, 131 Roundness measuring machines 189 Routers 211 RTD sensors 2 Safety light curtains 95 Safety relays 141 Safety shoes 59, 65 Sampling valves 201 SCADA & DCS implementation 123 Scanners 2 Scissor lifts 15 Screw air compressors 207 Screw jacks 45, 131 Screw type connectors 14 SDF 229 Seals 206 Sectional overhead doors 15 Security & audio visual 47, 67, 113, 127 Security seal 33 Semiconductor ICs 47, 67, 113, 127 Semiconductor modules 47, 67, 113, 127 Semiconductor tools 47, 67, 113, 127 Semiconductors 47, 67, 113, 127 Sensitive part loading/unloading 157 Sensor bearings Front inside cover Sensors & transducers 47, 67, 113, 127 Sensors male connectors 14 Servo motors & drives 45, 131 Servo motors 32 Shaft loading 157 Sheet metal forming 147 Ship building production 90 Shipyard cranes 215

Product

Pg No

Shock absorbers 104 Shunts 84 Signal isolators 2 Simplair anodised aluminum piping 89 Single acting hydraulic cylinders 253 Single speed gear machines 211 Siphon systems 104 Slat conveyors 55 Slewing bearings 45, 131 Slim nut ball screws 45, 131 Slings 222 Slipring crane duty motors 57 Slot type 14 SMPS systems 111 Solar cell scribing systems 51 Solderless terminals 85 Solid carbide drills 169 Solid carbide mills 169 Solid carbide reamers 169 Solid carbide special drills 169 Solid carbide special mills 169 Solid carbide special reamers 169 Solid-state relays 141 Space sectors 55 Special application motors 78 Special induction hardening machines 121 Special purpose machines 10, 205 Specialty metals 55 Spiral bevel gearboxes 12 Spiral cables 41 Spiral-cum-helical gearboxes 149 Squeezing rolls Front gatefold SSRs 141 Standard induction hardening machines 121 Static control & site safety 47, 67, 113, 127 Steam engineering 209 Stirrers 201 Straight & right angle connectors & cable assemblies 14 Straight grinders 211 Swing check valves 201 Switchboard meters 84 Switches & relays 47, 67, 113, 127 Switches 4 Switchgears 229 Switching relays 95 Table-type & floor-type horizontal boring machines 90 Tail lifts 15 Tapping heads 125 Tapping machines 125 Taps 87 Technical ceramic 1 Tees 201 Teflon coatings 201 Tefzel coatings 201 Telescopic cylinders 253 Telescopic doors 15 Temperature controllers 95, 119 Temperature-resistant cables 41 Terminal blocks 111 Terminal strips 111 Test rig automation for industrial fans 39 Test 47, 67, 113, 127

Product

Testers 84 Thermocouples 2 Thin wall polyolefins 151 Timers 2, 95, 141 Tool holders 243 Tooling 243 Tools & production supplies 47, 67, 113, 127 Torque motors 12, 78 Totalisers 2 Tower cranes 129 Transformers 47, 67, 84, 113, 127 Transmitters 2 Tube bending technology 218 Tubing accessories 103 Turn buckles 222 Turning machine solutions 69 Turrets 133 Twin spin bearing reducers 81 Twin spindle & turret CNC turning centers 195 Two-wire transmitters 2 Universal controllers Vacuum booster pumps Vacuum systems Valve positioners Valve seats Valve terminals Valves Variable frequency drives Variable speed drives Variable speed pulleys VDI tool holders Velocity & feed controllers Ventilators Vertical & double column CNC machining centers Vertical boring lathes Vertical machining centers Vertical order pickers Vertical rotary surface grinders Vertical turning lathes Vertical turret milling machines Vibrating reed type Vibration motors Vision sensors

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119 Back gatefold Back gatefold 170 193 103 103, 201 95 12 12 243 104 71 195 10 133 15 90 10, 205 171 84 12 95

Water faucet & tap parts 1 Water-cooled reciprocating compressors 89 Waterjet cutting machines Front gatefold Wearhouse and distribution 241 Welding positioners 90 Wire & assemblies 47, 67, 113, 127 Wire connectors 85 Wire mesh conveyors 55 Wire rope clamps 222 Wire rope slings 222 Wire ropes 222 Wires 134 Worm gear speed reducers 12 Worm gears 149 Y-type strainers Zener barriers Zirconia polycrystal ceramics

FINALIZE SUPPLIERS @ 242

Pg No

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www.engg-expo.com

ADVERTISERS’ LIST To know more about the advertisers in this magazine, refer to our ‘Advertisers’ List’ or write to us at search@infomedia18.in or call us at +91-22-3003 4640 or fax us at +91-22-3003 4499 and we will send your enquiries to the advertisers directly to help you source better Advertisers’ Name & Contact Details

ABB Limited T: +91-80-22949560 E: amit.a.sharma@in.abb.com W: www.abb.co.in

Pg No

Accurate Sales & Services Pvt Ltd T: +91-20-66039000 E: accurate@vsnl.com W: www.accurategauging.com

189

Action Construction Equipments Ltd T: +91-11-40549900 E: marketing@ace-cranes.com W: www.ace-cranes.com

129

Aggreko Energy Rental India Pvt Ltd T: +91-20-40192900 E: rentals@aggreko.in W: www.aggreko.in

Alfa Laval India Ltd E: india.info@alfalaval.com W: www.alfalaval.com Allied Electronics Corporation T: +91-22-26616619 E: sales@aecconnectors.com W: www.aceconnectors.com Amcats Pvt Ltd T: +91-22-27635005 E: sales@amcats.com W: sales@amcats.com

167

45; 131

Advertisers’ Name & Contact Details

Pg No

Bosch Rexroth (India) Limited W: www.boschrexroth.co.in

Bry Air (Asia) Pvt Ltd T: +91-11-23906777 E: bryairmarketing@pahwa.com W: www.bryair.com

199

C&S Electric Ltd. T: +91-11-30887520-29 E: ravi.gautam@cselectric.co.in W: www.cselectric.co.in Coatec India T: +91-172-5063436 E: info@coatecindia.com W: www.coatecindia.com Cosmos Impex (India) Pvt. Ltd. T: +91-265-3927000 E: sales@cosmos.in W: www.cosmos.in CRI Pumps (Pvt) Ltd T: +91-422-3260011 E: corp@cripumps.com W: www.cripumps.com

Advertisers’ Name & Contact Details

Pg No

EFD Induction Limited T: +91-80-7820404 E: sales@efdgroup.net. W: www.efd-induction.com

121

Elecon Engineering Company Limited T: +91-2692-236469 E: infogear@elecon.com W: www.elecon.com

149

Electro Pneumatics & Hydraulics (I) Ltd T: +91-2135-667500 E: epchakan@electropneumatics.com W: www.electropneumatics.com

218

123 Electronica Hitech Engineering Pvt Ltd 96; 137 T: +91-20-30435400 E: hitech@electronicahitech.com W: www.electronicahitech.com 142; 173; 191 Electronica Mechatronic Systems 171; 197; 233 T: +91-20-24224440 E: drosales@electronicaems.com W: www.electronicaems.com 3 Element 14 India Pvt Ltd T: +91-80-40003800 E: india-sales@farnell.com W: www.farnell.in

CST Sensors India Pvt Ltd T: +91-80-41132204 E: india@cstsensors.com W: www.cstsensors.com

141

Avasarala Technologies Limited T: +91-80-26083300 E: marketing@avasarala.com W: www.avasarala.com

Darling Pumps Pvt Ltd T: +91-731-2720558 E: darlingin@satyam.net.in W: www.darlingpump.com

244

Boge Compressed Air System T: +91-44-43009610 E: S.Sriram@boge.de W: www.boge.in

Deep Pneumatics Pvt Ltd T: +91-79-22803684 E: sandip@deeppneumatics.in W: www.deeppneumatics.in

207

Bonfiglioli Transmissions (Pvt) Ltd T: +91-44-24781035 E: sales@bonfiglioliin.com W: www.bonfiglioliindia.com

East India Bearing Co. (P) Ltd. T: +91-22-40939200 E: mumbai@eibc.in W: www.eibc.in

206

47; 67; 113; 127

Empire Cable Industries Pvt Ltd T: +91-11-23874632 E: empirecables@yahoo.co.in W: www.empirecables.com

134

Endeavour Engineering T: +91-79-65123263 E: info@endeavourengineering.com W: www.endeavourengineering.com

193

Essen Deinki T: +91-172-4600600 E: info@essendeinki.com W: www.essendeinki.com

111

Everest Blowers T: +91-11-45457777 E: info@everestblowers.com W: www.everestblowers.com

.BGF

Our consistent advertisers

250

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ADVERTISERS’ LIST Advertisers’ Name & Contact Details

Pg No

Fenner India Ltd T: +91-44-24312450 E: ptd.mhq@fennermail.com W: www.fennerindia.com

159

Festo Controls Ltd T: +91-80-22894100 E: info_in@festo.com W: www.festo.com

103

Forbes Marshall Pvt Ltd T: +91-20-27145595 E: bgaikwad@forbesmarshall.com W: www.forbesmarshall.com Forging Machinery Manufacturing Co T: +91-161-5011755 E: info@nkhhammers.com W: www.nkhhammers.com

T: +91-79-22820123

E: marketing@havells.com

E: airsolutionsindia@irco.com

W: www.havells.com

W: www.ingersollrand.co.in

Hensel Electric India Pvt. Ltd.

Jaibalaji Control Gears Pvt. Ltd., 22; 24; 26; 28 T: +91-44-26251279

E: henselelectric@vsnl.com

E: dchandramohan@jaibalaji.firm.in

W: www.hensel-electric.de

W: www.jaibalaji.firm.in 201

Jyoti Ceramic Industries Pvt Ltd

T: +91-79-25833040

T: +91-253-2350120/338

E: hitech@ptfeindia.com

E: info@jyoticeramic.com

W: www.ptfeindia.com

W: www.jyoticeramic.com

E: info@hi-fab.com

E: info@jyoti.co.in

W: www.hi-fab.com

W: www.jyoti.co.in

E: valves@hi-fab.com

E: info@katlax.com

W: www.hi-fab.com

W: www.katlax.com

Konecranes India Pvt Ltd

T: +91-11-40515640/41

T: +91-20-40047470

E: rsaraswat@hilscher.in

E: india.sales@konecranes.com

W: www.hilscher.com

W: www.konecranes.com 78

Lapp India Pvt Ltd T: +91-80-7826000

E: sales@hindmotors.com

E: sales@lappindia.com

W: www.hindmotors.com

W: www.lappgroup.com 107

Lenze Mechatronics Pvt Ltd

T: +91-09986337038

T: +91-20-66318100

E: vaibhav.nagori@igmi.it

E: marketing@lenze.in

W: www.iemca.com

W: www.lenze.in 98

Liberty Shoes Ltd T: +91-1748-251120

E: info@igus.in

E: warriors@libertyshoes.com

W: www.igus.in

W: www.libertyshoes.com

T: +91-80-40322500

T: +91-265-2632123

E: info@guhring.in

E: info@indoelectricals.com

W: www.guhring.in

W: www.indoelectricals.com

215

152

T: +91-80-39127800

Indo Electricals

T: +91-22-42500500

Igus India Pvt Ltd BC; IGF

213

.BIC

Katlax Enterprises Pvt Ltd T: +91-2764-286784

Hindustan Motor Mfg Co

170

T: +91-22-40766539

Hilscher India Pvt Ltd

161

Jyoti Cnc Automation T: +91-2827-287081

Hi-Fab Valve Automation

116

T: +91-22-28879351

Iemca Division Of IGMI S.P.A

Guhring India Private Limited

T: +91-44-24541669

Hi-Fab Engineers Pvt Ltd

169

Grundfos Pumps India Pvt Ltd T: +91-44-24966800 E: salesindia@grundfos.com W: www.grundfos.in

Ingersoll Rand (India) Ltd

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G W Precision Tools India Pvt Ltd T: +91-80-40431252 E: info@gwindia.in W: www.gwindia.in

Goliya Electricals P. Ltd T: +91-22-24120456 E: geplmumbai@mtnl.net.in W: www.goliya.com

Advertisers’ Name & Contact Details

T: +1800-11-0303;011-41660303

Hi Tech Applicator

177

Gem Equipments Ltd T: +91-422-3267800 E: sales@gemindia.com W: www.gemindia.com

Havells India Ltd.

Pg No

209

Freeze Tech Equipments Pvt Ltd T: +91-44-42152387 E: info@freezetechequip.com W: www.freezetechequip.com

Gandhi Automations Pvt Ltd T: +91-22-66720200 E: sales@geapl.co.in W: www.geapl.co.in

Advertisers’ Name & Contact Details

Maco Corporation India Pvt Ltd T: +91-33-24758371 E: prbhowmick@macocorporation.com W: www.macocorporation.com

104

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251

ADVERTISERS’ LIST Advertisers’ Name & Contact Details

Pg No

Macro Tech Equipment Pvt Ltd T: +91-33-24666261 E: info@macrotechcal.com W: www.macrotechcal.com

Mallcom Safety Pvt Ltd T: +91-33-40161000 E: safety@mallcomindia.com W: www.mallcomindia.com

Mayura Automation & Robotic Systems T: +91-44-26210152 E: mayuras@airtelmail.in W: www.mayuras.com

Meiban Engineering Technologies Pvt T: +91-80-26491229 E: sales-turning@meibanengg.com

Advertisers’ Name & Contact Details

Pg No

Omron Automation Pvt. Ltd. T: +91-80-40726400 E: srirams@ap.omron.com W: www.omron-ap.com

P Parmar Mechanical Works T: +91-278-2447409 E: info@parmardrill.com W: www.parmardrill.com

217

Advertisers’ Name & Contact Details

Radix Electro Systems Pvt Ltd

Pg No

T: +91-22-26730101 E: sales@radix.co.in W: www.radix.co.in Realty Automation&Security Systems

249

T: +91-20-32922630 E: sales@vighnaharta.in W: www.vighnaharta.in

Paharpur Cooling Towers T: +91-33-24792050 E: pctccu@paharpur.com W: www.paharpur.com

5 Renu Electronics Pvt Ltd

255

T: +91-20-27292840 E: info@renuelectronics.com W: www.renuelectronics.com

Metaflex Doors India Pvt Ltd T: +91-120-4751000 E: richa@metaflex.in W: www.metaflexdorrs.in

241

Micromatic Machine Tools T: +91-80-41492285 E: mmtblr@acemicromatic.com W: www.acemicromatic.com

133

Mifa Systems T: +91-79-26870825 E: sales@mifasystems.com W: www.mifasystems.com

119

Misumi India Pvt Ltd T: +91-20-66470000 E: sales@misumi.co.in W: www.misumi.co.in Mitsubishi Electric Asia Pte. Ltd. T: +91-124-4630300 E: marketing@mspl.messung.com W: www.messung.com National Power Tools T: +91-79-22822750 E: marketing@nipponpowertools.com W: www.nipponpowertools.com Nl Systems India Pvt Ltd T: +91-80-41190000 E: ni.india@ni.com W: www.ni.com

Pee Vee Precision Works Pvt Ltd T: +91-44-22501516 E: prewo@prewo.co.in W: www.prewo.co.in

125 Rigil Techno (I) Pvt. Ltd. T: +91-11-41641194 E: info@rigilindia.com

Peschel Dynamics T: +91-20-32416980 E: info@pescheldynamics.com W: www.pescheldynamics.com

Pidilite Industries Ltd T: +91-22-33087544 E: sunil.ugalmugale@pidiite.com W: www.pidilite.com

T: +91-09884041772 E: ravindran777@gmail.com W: www.roofventindia.in Roto Linear Systems

T: +91-80-23572855 E: rotolinearindia@vsnl.net

Pioneer Cranes & Elevators Pvt Ltd T: +91-161-2491935 E: info@pioneer-cranes.com W: www.pioneer-cranes.com

256

Power Build Ltd T: +91-2692-231070 E: infopbl@elecon.com W: www.pbl.co.in

175

Precise Engineering Works T: +91-278-2470868 E: precisegohil@rediffmail.com

243

Premium Transmission Ltd T: +91-20-27488886 W: www.premiumtransmission.com

237

S&T Engineers

T: +91-422-2590810 E: stycm@stengineers.com W: www.stengineers.com Safcon Seals Pvt Ltd

T: +91-33-22295486

34; 115

W: www.rigilindia.com Roofvent Industries

.COC

211

151

E: safcon@vsnl.com

Proteck Machinery Pvt. Ltd. T: +91-44-24450716 E: mtdsales@proteck.co.in W: www.proteckmachinery.com

W: www.safconsecurityseal.com Sahajanand Laser Technology Ltd

T: +91-79-23287461 E: marketing@sahajanadlaser.com W: www.sahajanandlaser.com

Sahil Alloys & Machine Tools (P) Ltd

T: +91-1871-241925 E: surajfoundry@vsnl.com W: www.sahilalloys.com

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Sarabsukh Enterprises

Pg No

205

Advertisers’ Name & Contact Details

Pg No

Standard Electricals Ltd

229

Advertisers’ Name & Contact Details

The Indian Electric Co

T: +91-1871-223893

T: +91-11-41660303/ 1800 11 0303

T: +91-20-24474303

E: sarabsukhbatala@yahoo.co.in

E: standard.ho@stndelec.com

E: icemktg@indianelectric.com

W: www.sarabsukhmachines.com Satyabhumi Machine Tools

203

Starragheckert Machine Tools Pvt. Ltd

W: www.indianelectric.com

W: www.standardelectrical.com

T: +91-278-2438241

Pg No

139

The Supreme Industries

T: +91-22-40430000

E: pmwbvn@dataone.in

T: +91-80-42770600

E: protec@supreme.co.in

W: www.prakashmachines.co.in

E: purchaseindia@starragheckert.com

W: www.supreme.co.in

W: www.starragheckert.com SBS Precission Inda Pvt.Ltd.

165

TIDC India

T: +91-33-32920078

Statfield Equipments Pvt. Ltd.

E: enquiries@sbsindia.in

T: +91-20-22922180-82

W: www.sbsindia.in

101

T: +91-44-42235509 E: industrialchains@tii.murugappa.com W: www.tidcindia.in

E: marketing@statfieldequipments.com W: www.statfieldequipments.com

Schuler India Pvt Ltd

147

TPG Motors & Drives (India) Pvt Ltd

T: +91-22-66800300

T: +91-44-23634199 Sterling Tools

E: info@schulerindia.com

T: +91-836-2332756

W: www.schulergroup.com

E: tpg_in@yahoo.com W: www.tpg-tw.com

E: sterling_tool@yahoo.co.in Sealed Air India Pvt Ltd

135

Tussor Machine Tools Ind P Ltd

T: +91-80-40507272

Sumitron Exports Pvt Ltd.

E: Epd.india@sealedair.com

T: +91-11-41410631

W: www.sealedair.com

179

T: +91-422-3200183 E: info@tussorindia.com W: www.pinachoindia.com

E: sumitron@vsnl.com W: www.sumitron.com

Shashwat Systems Pvt Ltd

253

Tyrolit India Superabrasive Pvt. Ltd

T: +91-79-65214825

T: +91-80-40953259 Taiwan Association Of Machinery Industry

E: sales@shashwatsystems.com

(Tami)

W: www.shashwatsystems.com

E: subrahmanya.kumar@tyrolit.com 9

W: www.tylolit.com

T: +886-2-2349-4666 SKF Economos India Pvt. Ltd.

163

T: +91-11-41098880-89

E: tami@tami.org.tw

U-Tech Associates

W: www.tami.org

T: +91-80-23390309

E: india@economos.com

157

E: udaya@u-techindia.com

W: www.economos.com

Tal Manufacturing Solutions Ltd

231

W: www.u-techindia.com

T: +91-09011069282 SKF India Limited

.FIC

T: +91-22-66337744

Utkal Engineers

E: ganesh.hirve@tal.co.in W: www.tal.co.in

E: ibu.marketing@skf.com

222

T: +91-79-40065598 E: utkal_engineers@yahoo.com

W: www.skf.com

W: www.utkalengineers.com Techaids

.FGF

T: +91-172-4379995

Venus Engineers

T: +91-33-32587165

E: info@techaids.in

T: +91-11-32222661

E: sales@southerncooling.net

W: www.techaids.in

E: enquiry@venusengineers.com

Southern Cooling Towers Pvt Ltd

183

W: www.southerncooling.net

W: www.venusengineers.com Teknomec

Sreelakshmi Traders T: +91-44-24343343 E: sreelakshmitraders@gmail.com W: www.sreelakshmitraders.com

T: +91-44-26633000 E: sales@teknomec.com W: www.teknomec.com

195 Wagner

181

T: +91-124-4121626 E: imtiaz.ahmed@wagner-group.com W: www.wagner-group.com

Our consistent advertisers

254

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Vol 14 No 01

January 2011

Vol 14 No 01

January 2011

Reg No: G2 / NMD / 81 / 2011 - 2013 RNI No: 67827 / 98 Date Of Posting 22nd & 23rd Of Every Previous Month / English & Monthly. Licence to Post at Mumbai Patrika Channel Sorting Office, Mumbai GPO., Mumbai 400 001. Date Of Publication: 18th of Every Month

260